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 6-11-2009
The Futures were positive pre-market, and the DOW advanced 70 points in the first three minutes, reaching its high for the day. The best play this week has been buying the close and selling the first profitable move of the next day.
ISRG has worked that way this week. I bought the 155 call again at the close Wednesday, looking for an up open tomorrow. We will see if it works a third time.
The market has the unemployment numbers one hour before the open, and follows with the business inventory at 10:00 EDT. The flatness of this week is showing the lack of confidence in the current quarter’s earnings. If we continue flat through Friday, I would look for next week to have one day with a 400-500 point gain and then down hard for the rest of the month. The next stimulus for the market will probably have to wait until earnings releases in the second week of July.
The market is going to get harder from here. We have to start picking winning stocks instead of playing the rebound off the March bottom. This is when the new high list is most useful.
Wednesday’s list had 43 stocks hitting new 52-week highs. VPRT, FUQI, CYOU, ICUI are all stocks that are on tremendous runs.
A stock such as FUQI, which has run from $5.00 to $18.00 in the last six weeks, is very tempting, but we are late to the party. Wait for a pullback of at least 10% before taking a position. In addition, be aware this is a Chinese jewelry stock and you need to be careful of the financial numbers released.
The market could be indicating the beginnings of a retracement, and the fact that next week is option expirations; we need to keep tight stops on all plays.
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