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 6-9-2009
The DOW managed a one-point gain after being down over 120 points in the first half hour. If you believe in manipulation, you can look at today’s market with a “See I told you so”. If the market makers wanted stock at bargain prices, they had depressed prices from 30 minutes after the open until 30 minutes before the close. The total volume during that period was a bargain. The proof of the pudding will be tomorrow.
The DOW did hold the 8600 support, trading from a low of 8633 to a high of 8823, suggesting further upside to this run.
The Dow Theory says the transports will rise before the DOW, on the thought, the transportation stocks will see a shipping recovery before the wholesale and retail stocks show recovery. At this time, the transport index is trying to break above its May high.
The financial and commodity stocks pulled back today, and the Chinese stocks were flat. The BIDU option traded at $8.77, thirty minutes into the trading day, and closed at $13.50.
The new high list was topped by MNKD. This is the type of stock that I love to bash. The stock gained $1.02 to close at $8.08. It looks interesting until you study the fundamentals. The company has 102 million shares in the float, resulting in a price tag for the company of over $800 million. The company has yet to make a sale, and is burning through cash at a rate of $.58 a share each quarter. It has only $.33 a share left in the bank, meaning it cannot make it through the next quarter without a loan, or issuing more stock. GO FIGURE.
This is the week before option expirations, so as option premiums deteriorate, stocks like ISRG, and BIDU should have some attractive plays.
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