Unemployment report came out and there was a big drop of 80,000 jobs for the month. This was more than analysts expected. Plus, the unemployment rate jumped to 5.1%.

Of course, this doesn’t include the 8,800 layoffs Dell announced, the proposed breakup of UBS (which should result in more layoffs), and others which I just can’t find right now.

And all of this weakness should continue into May. But I do expect some of those tax rebates to come in and prop up consumer spending for a month. I’m glad (please note the sarcasm) that our government decided to take a loan on a $150 billion tax break.

If they did this over ten years, that means we’ll pay an additional $37.5 BILLION in interest payments when all is said and done. And to what, prop up spending for a month?

Oh well.

Since the market opened though, three of my open positions are doing great. One isn’t. But then again, that’s a long-term hold. So I don’t expect it to perform great right now. But in about two years I should be sitting on 200-300%.

Now, if only the Dow could go ahead and fall about 200 points, then I’d feel much better about the market. Reason being, the Dow is sitting right under trend-line resistance. If the Dow breaks through this, it could signal further gains.

But if it fails to pass this resistance, then it should mean the Dow could move back down to 12,000 at the very least.

One thing is certain, next week we’ll see a lot of volatility. Hopefully the market does what I expect so I can make boatloads of cash. If not, then it would be time to reverse course and start looking for the beaten down companies.

This brings me to an important point. Always have a plan of action.

Sometimes when you invest, you’ll be wrong. And if you have several positions open, then you’ll need a plan of action in case you have to reverse course. If you have a plan ready, then you can quickly eliminate the losers and get into positions that will make you money.

Alright, it’s time to go get some coffee. So I’ll talk to everyone later!