John Mylant's  Instablog

Daily Trading Observations

IRS- Nice sideways movement keeps us in bullish territory and no signs that it will change soon. We continue to move up on strength short term.

Bollinger Bands- the bands are starting to contract and that could possibly mean a tighter trading range. The SPY touched the top of the band and pulled back yesterday so we shall see if we stay within this(click to enlarge) range for a while or if we are going to attempt to push upward again.

MACD- We finally look bullish as we are above the '0'makr and looks like we are going to stay there. The MACD Histogram also looks like it is moving up on strength also so we see no need for a bearish sign yet.

We look nice and bullish today with a mild flavor.

Current World Events

Unhappy with weak demand for high-end Android tablets, PC manufacturers such as Dell (DELL), H-P (HPQ) and Acer are focusing their R&D resources on developing Windows 8 (MSFT) products, reports Digitimes. The same goes for leading contract manufacturer Compal.

Payroll processor Automatic Data Processing Inc. (ADP) said Wednesday only 119,000 private-sector jobs were created in April, far below the increase of 175,000 jobs expected. Since the U.S. recovery depends on faster job growth, the ADP report sent slump-fearing investors scurrying away from risky financial assets.

Economists at Nomura Securities point out the ADP number under-counted the Labor Department figures in April 2011 and April 2010 by roughly 90,000 each time.

The median projection is that 168,000 jobs were created in April after March payrolls showed an anemic 120,000 increase.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.