Investors are approaching the week with “itchy trigger fingers”, according to chief investment strategist for Northern Trust, Jim McDonald. After last week’s housing and manufacturing data checked the market’s 7-month advance, the pits are wary going into a week set to be dominated by more reports on leading economic indicators.

The Labor Department’s monthly report due out Friday will be paramount to many, addressing concerns over unemployment. Compounding the uneasiness will be reports on industrial output, pricing, consumer confidence, factory orders and construction spending. Investors will also be watching for new outlooks in anticipation of 3Q earnings data next month, which should indicate the relative health of companies.

Last week’s losses were chalked up to poorer-than-expected performance in commodities, home sales and durable goods orders. The DJIA, S&P and NDAQ were down roughly 2% by week’s end, despite encouragement from the Fed and a seemingly rosy unemployment report showing job

In spite of Friday’s 6% US stock market rise, the general mood is gloomy and getting gloomier.  This week’s Barron’s was particularly gloomy.

Multiple articles said there is no place to hide.  We have said the same, as in our Oct 26 post of the same name, “No Place to Hide”.  The fact is, however, there have been places to hide that persist today.  They should be considered, but cautiously in these volatile times.

A specific example of the gloom comes from one of our favorite columnists, Alan Abelson, who said;

November 24 (Barron’s)

Was Friday’s late and sharp rebound another of those one-day wonders or is it, at long last, the start of something a bit more enduring … We earnestly hope it is. But … this market has been filled all the way down with deadly head feints. So the best advice we can offer for the nonce is to wait