Stocks for Feb 1st: PPO, AMZN, STX, QCOM, FAZ, ERY

ADP report is expected to show 175k job added previous was 325k (8.30 EST)

As expected the market opened higher because of ECB fine tuning operation, but the main stream is hiding this fact and giving credit to EU fiscal treaty. Yesterday night, Greece PM called an emergency crisis meeting but there is no information as of now what was discussed during this meeting.

This market is manipulated at it best. Its breaking all the trend and the latest broken trend is inspite of ECB injecting billions of Euro in the market, EUR/USD is rising. Based on the amount of liquidity injected by ECB, ideally EUR/USD should had been at 1.22 level but its at 1.32 If ECB continues printing money sooner or later EUR/USD will be at 1.18 level once the market comes to reality. But this doesn't mean one should take safe position and short Euro, instead of that go by the market trend. If it is moving up by FXE and if its going down then buy EUO and use stop loss to prevent big loss. Just follow the market.

Tomorrow is every important day for US stock market with lots of economic data coming out. The expectation is once again lowered so don't be surprised if the expectation is beaten.The volume in US stock market has decreased by 54% since 2008 and 29% YoY.  Low volume always lead to suspect rally and when the downfall will happen it will be very big as pointed in my August article. http://www.freefdawatchlist.com/2011/08/3-step-mantra-for-job-creation.html

Finally S&P500 has broken the channel and moved outside  channel. If S&P500 can stay 1312 or lower especially 1305. For Dow jones 12530 is key resistance level, if it breaks then its heading lower.

Tomorrow watch out this event

Motor Vehicle Sales 

MBA Purchase Applications
7:00 AM ET

Challenger Job-Cut Report
7:30 AM ET

ADP Employment Report  (172k is expected higher is bullish, lower is bearish)
8:15 AM ET

ISM Mfg Index  (54.5 is expected lower is bearish, higher is bullish)

10:00 AM ET

Construction Spending (0.5% is expected lower is bearish, higher is bullish)
10:00 AM ET

EIA Petroleum Status Report ( rise in inventory is bearish, lower or negative is bullish)
10:30 AM ET

Stock expected to open higher : [[STX]], [[FTNT]]

Stock expected to open lower : UIS,RENN,AMZN

The market is likely to be negative till next Tuesday. The best strategy to play in this market is play on daily basis and target individual overbought stock.