After a long weekend, stocks are holding on to the edge with the Dow clinging to13,000 and the S&P at 1399. The ISM came in just below the target at 49.6, but anything below the level of 50 signals contraction. Also, the employment component was the lowest since November 2009, which is not the direction the market wants to see… This pushed stocks back down to critical levels, especially after the Ben Bernanke speech on Friday moved virtually all markets higher. mortgage bonds opened lower, but have since regained the losses with pressure on stocks. Thursday is a big day with the focus on Europe as Mario Draghi of the ECB, will discuss a potential bond buying program. Friday also brings the monthly jobs report. If the number is low, investors expect QE3 to happen sooner rather than later. Rates are great, so a locking bias will protect against the upcoming volatility.