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 6-3-2009
The Dow had a neutral day with a closing up 19. Gold continued its run with a gain to the 980 level. There is a lot of optimism, with one of the talking heads saying DOW 14000 is in the sights. WOW.
I would say the bullish comments are out numbering the bears 4-1. Although I did hear a couple very negative facts, one suggesting that volume is going to dry up by 20%, causing a difficult time for any further run-up in the near term. The other had an interesting comment about the consumer being out of the market for the next few years due to lack of funds.
The average consumer has lost income as compared to last year, whether it is a loss of overtime, a shorter workweek, or a loss of job. The other loss of income is the inability to borrow against gains in the value of their home. With housing prices declining, and credit tightening, people are not able to take a second mortgage as a second income.
Gold is still a play, with the GLD FO option being most active for the GLD ETF. I am looking at the GLD FV at $.91 as a way to play in the current month.
The new high list has 23 stocks, and the new low only 2. There are a number of stocks on the new high list to add to a watch list, but today is not the day to chase. We will put some of these under review and wait for a 10 % pullback to initiate a position. I have been trying to find this list on yahoo finance, so I can direct people to a free site and follow the numbers.
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