The Oxen Picks Weekly Report: A Possible Breather…Options to Short?

This coming week we have a number of important economic indicators and earnings that will help shed more light on unemployment, the manufacturing sector, and the housing industry. Many analysts and buzz is looking to say this might be a week for some profit taking, a nice breather, and a chance for investors to look for bargains to get into what is looking more and more like a long term bull market.

Mike Sheldon from RDM Financial Group said, "A majority of positive earnings news is behind us, so it wouldn’t be surprising at all, in fact it might be healthy for the market, to see a brief pullback to refresh and bring new investors back into the market."

 My personal opinion is that the market is in a great position for shorting this week and picking up inverse ETFs. The market has been heavily overbought and overvalued. Almost every sector has jumped way too fast, and a healthy pullback is in order.  Technically, the market is way overvalued on RSI, nearing upper bands, overbought on stochastics, and all these indicators together point to the fact that just good news won’t be able to hold the market up this week, and mediocre news will be reason to sell.

Important Economic Indicators This Week:

<!---->-          <!---->Monday:  ISM Manufacturing Index, Construction Spending, Domestic Vehicle Sales

<!---->-          <!---->Tuesday: Core PCE Price Index, Personal Spending/Income, Pending Home Sales

<!---->-          <!---->Wednesday: Challenger Job Cuts, Nonfarm Employment Change, Factory Orders, Crude Inventories

<!---->-          <!---->Thursday: Initial Jobless Claims, Natural Gas Storage

<!---->-          <!---->Friday: Nonfarm Payrolls, Unemployment Rate

We are definitely looking at some really crucial market moving economic data this week. I think the sectors that will really be market leaders or draggers will be manufacturing, housing, REITs, and energy. I have been bearish on the housing market, as I think it is really overvalued and people are expecting way too much from it. The all important unemployment rate on Friday may not be as crucial as people think. I think people have priced in that expected 10% rate. If it is better than expected, the market could really soar on Friday, but a worse than expected may not cause a 2% drop by any means.

Important Earnings This Week:

<!---->-          <!---->Monday Pre-Market: Humana (HUM), Loews  (L), Marathon Oil (MRO), Tyson Foods (TSN)

<!---->-          <!---->Monday After-Hours:  Centex Corp. (CNX), Chesapeake Energy (CHK), Pulte Homes (PHM)

<!---->-          <!---->Tuesday Pre-Market: CVS Caremark (CVS), Simon Properties (SPG)

<!---->-          <!---->Tuesday After-Hours: Kraft Foods (KFT), News…