DOW IS BEARISH POSITION

FUNDAMENTAL

(Bloomberg) The US economy is in a deepening recession. The number of Americans filing first- time claims for unemployment benefits matched the highest level in 26 years. Initial jobless claims increased by 62,000 to 589,000, more than forecast, in the week ended Jan. 17, from a revised 527,000 the prior week, a Labor Department report showed today in Washington.

(MarketWatch) Construction on new homes took another turn for the worse in December, falling more than 15% to a seasonally adjusted annual rate of 550,000, the lowest on record, the Commerce Department reported Thursday.

Permits to build single-family homes fell 12.3% to a record-low 363,000 in December, while total permits including apartments dropped 10.7% to a 549,000 annual rate, also a record low. Building permits are considered a more reliable guide to the state of the housing market, because they are less affected by weather conditions than the housing starts figures.

The report was much worse than expected for the second consecutive month. Economists surveyed by MarketWatch were looking for a smaller drop to an annual rate of about 600,000, thinking that November's 15% decline in starts wouldn't be repeated.

(New York Times) The Microsoft Corporation, the software company, said Thursday that it would cut 5,000 jobs, about 5 percent of its work force, fallout from a slowdown in sales brought on by the global recession.

The company also reported that its profit in the second quarter declined 11 percent.

“While we are not immune to the effects of the economy,” the chief executive, Steven A. Ballmer said Thursday in the company’s earnings report.

Microsoft also reported second-quarter net income of $4.17 billion, or 47 cents a share, compared with $4.71 billion, or 50 cents, in the quarter a year earlier. Sales were $16.6 billion in quarter. Wall Street had expected earnings of 49 cents a share on sales of $17.1 billion.

TECHNICAL

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BEARISH TREND

1.RSI below 50%.

2.CCI below -100.

3. Far below MA30, MA40, and middle Bollinger Band.

4. THREE RED SOLDIER

SO MY SUGGESTION DO NOT BUY ANY STOCKS RIGHT NOW!! JUST SLEPP