Stock Market
All comments and Stock Market Ananlysis are made by Guy Brumley. Guy has been trading the Stock Market daily since 1992.
Trading, evaluating stock prices and predictions
Market Commentary 2-11-2009
Today’s market is treading water ahead of option expirations. Yesterday we had the classic “sell the fact” reaction to the stimulus package. Now we have cheap options with two days of longevity remaining.
If Congress can bring out any happy horsebleep cheerleading, we could see a rally back to 8250 level on the Dow. If not, we will try to hold the 7800 level, that has been support since November. The market is on the brink of going to new lows, and the speed at which it moves will depend upon how long it takes to make sense of the stimulus package. The understanding of who gets what and when will dictate the sweet spot (if any) in the next leg of the economy and therefore the next stock market leaders.
It looks like the money is there in the stimulus package, but the mechanism to put it into our economy is missing. Here is the problem the market has in calling a bottom at this time.
Good stocks have been beaten up in this sell off. One that I am trading is ISRG.
It has traded down from $350.00 down to $88.00 and is now back over $100.00.
This has sales growth, earnings, and backlog that should make for increased stock price
and attractive returns.
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