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 2-19-2009
Today, with one day left on the February options it looks quiet. The data that is released today is likely to be more of the same. Unless one of the numbers is way out of whack, the indexes will hold within the trading range of the last week. Most February options bought today will end up losing money, tomorrow, that is how the game is played.
Yesterday, I mentioned the VIX. This is the measure of fear in the market. As it goes up, the market drops, and vise versa. The long-term graph of this indicator is an interesting study. It is suggesting another spike up, which correlates to another leg down in stocks.
Right now, this market is searching for any good news to bring in buyers. And rallies in bear markets are huge and fast. Very few rallies occur at the end of an option expiration cycle. When the next rally occurs, traders must move in early and take profits quickly.
The market is a leading indicator for our economy. It will put a bottom six months before companies show improvement. The current forecast for GDP is weak for all 2009, so do not rush into with long-term money. CD’s are safer and you will not lose your nest egg.
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