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 6-2-2009
The market had a great day Monday, with the DOW up 221. The landscape has changed, as the DOW throws out the weak stocks and adds the strong. The replacing of GM by Cisco, and C with Travelers, should reduce the possibility for the DOW dropping all the way back to DOW 6500.
In addition, the ISM numbers were “stronger” than forecast, reaching 42, above the 40 predicted. The sad part of this is we are still contracting. Any number under 50 is still bad.
The market has more economic numbers this week, providing more volatility. We still are looking at 9000 at first resistance and 9500 as second.
The new high list had over 40 stocks on it. Names like Palm, Tlab, Ntes, Coms, Siga, Snda, (old momentum stocks), and some of the new stocks, like Fire, Frpt, Kirk.
I think the market is looking at the tremendous amount of money sitting on the sidelines in money market funds, and wants to nibble away at it. As greed enters back into play, we could see some further gains.
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