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
Stock Market Commentary 7-6-2009
Thursday’s 223-point drop is marked with an asterisk, because it was on lighter volume. Volume was 25% less than Wednesday’s. The asterisk is the lighter volume; it indicates the lack of participation by the institutions.
Institutional buying is the fuel for the market. With the amount of money in mutual funds, the theory is, it is impossible to hide their buying or selling activity in normal market volume. When the market has a big move, the volume confirms the significance.
Monday should be an up day. The perfect storm would have a strong down open, shaking out the weak hands, followed by a turn around at 10:15 – 10:35 EDT.
All positions taken Thursday should be closed at a profit, otherwise close the end of the trading day.
All other long-term positions should be protected with put options, or closed completely.
This week we start earnings with Alcoa on Tuesday. The fear is not the earnings, it is in the statements regarding the next two quarters.
It is important to know the earnings calendar for every stock you own. To hold a stock through earnings can be a life-changing event. Do not get surprised.
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