The good news this week is that preliminary figures are showing stronger-than-expected Black Friday retail sales. The bad news is the upcoming November employment report is expected to show a loss of another 350,000 jobs, which would be the worst drop since 1980. What do the professional traders of TraderInsight.com think?

Here’s the list of 10 stocks our professional traders will be watching this week:

Beazer (BZH), Centex (CTX), Horton (DHI), Lennar (LEN), Pulte (PHM), Archer Daniels Midland (ADM), Bunge (BG), Kinross Gold (KGC), AngloGold Ashanti (AU), Barrick Gold (ABX).

Do you want to day trade for living without actually having to learn how? Click here. 

Adrian Manz, Stock Day Trader

Last week’s holiday-shortened price action left the markets squarely in the center of their two-month travel range. The gains, while negligible in absolute terms, are significant because they have pulled price action off low range support and back to an area of the travel range that can absorb further bad economic and corporate news without breaking downside support and retesting 7,500 on the Dow Jones Industrial Average.

The price action we saw over the past several sessions was skewed by low volume, so there are not many setups going into Monday’s trading. One sector worth watching once again, however, will be the Homebuilders. Demand for new homes decreased again in October, with year-end results of 505,000 to 515,000 units probable. That will represent a decrease of 35% to 40% from 2007. 2009 projections look even more dismal at 375,000 units projected. Couple all this with a large increase in existing home inventory rates, and the builders are probably headed lower. I will watch the usual suspects in the sector this week, focusing on Beazer (BZH), Centex (CTX), Horton (DHI), Lennar (LEN), and Pulte (PHM).

Tom Incorvia, Stock Swing Trader

Even with the holiday-shortened week, the broader averages posted one of the more productive weeks in its history. All 31 sectors and 236 of the 239 of the sub-sectors were in the plus column. The rally was overdue and expected. The question that is in the front of trader’s minds: Is this the beginning of a tradable rally or merely an oversold reaction bounce? The jury is still out on that, but there are some subtle changes that give me the feeling of a more sustained rally. Maybe it’s wishful thinking, but a test of the top of the trading range in the Dow 30 (9700-9800) seems to be the next move in the market.

Friday’s release of the Non-Farm Payroll numbers will be the focus of the market. The market is looking for a loss of 316,000 jobs and a rise of the unemployment rate to 6.8%. More important than the numbers is the reaction to the numbers. If the news on the employment numbers is worse that expected and the market finds the support to rally, that may be a sign to a push to the top of the trading range. On the other hand, if the release is more optimistic than expected and the market sells off, there may be a test of the lows.

Over the last few months, I have been inundated by questions asking when the lows will be put in. My answer is always the same, when a major negative news announcement is made and the markets go higher. It’s that event that will be a shot across the bow to indicate that a tradable rally may be upon us.

As a top-down investor, I first look at the overall direction of the market, then the sectors, sub-sectors and finally the particular stocks. Even though a vast majority of the sectors are showing nothing more than an oversold bounce and remain in a bearish trend, my radar will be focusing on the upside, primarily due to the oversold condition of the market. Some of the sub-sectors that have potential for further upside moves are agricultural-seeds, and precious metals. Specifically, stocks that I will be watching are Archer Daniels Midland (ADM), Bunge (BG), Kinross Gold (KGC), AngloGold Ashanti (AU) and Barrick Gold (ABX).

Art Collins, Index Futures Trader

At the risk of sounding like a broken record, I won't believe the stock market bottom is in until we stop seeing immediate-snapback rallies off new lows. That action suggests that too many people are getting in at too good of prices. Maybe there are a lot of closet geniuses out there, but I think the more likely scenario is that the ultimate low will be made after most investors have thrown in the towel in the belief that the down action won't ever stop. Days or weeks will pass at higher levels, but not dramatically higher ones. Eventually those few remaining traders will notice that the last low has not been taken out for several weeks and that we're significantly above it. They might wonder how they failed to be on top of it as it was unfolding. Maybe it will be because they had long ceased checking their statements and tracking everything with such enthusiasm. The thrill will be gone to paraphrase a rock classic.

For the coming week, look for the unbroken five-day up-streak to be broken by Tuesday at the latest. The resuming down move could prove to be brutal. The S&P support and resistances are 739.00 and 918.00, respectively.

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.