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
Market Commentary 03-02-2009
S&P futures are down big this morning. With over 2 hours until the market opens, the futures are down over 20 points. No one wants to be long until we get some positive feedback from the stimulus package. The top news this morning is AIG getting $30 billion more in aid, while they report the biggest quarterly loss of any company in history.
I heard one of the top market timer gurus forecast DOW 5000 as a possible low. The bull to bear ratio in IBD is indicating bears in control. This is at numbers I have seen only three times in the last 15 years. It usually indicates a bottom, but it has been indicating a bottom for the last 4 months. What we need is for housing prices to stop falling, and or auto sales to show an up tick. This will bring in buyers and start a short-term rally.
When we see signs of buying, IBM is one of the first of the DOW stocks to play.
Unfortunately, the economy is still weakening, and this morning’s sell-off is only good for a quick in and out. The trend is still down, and the only reason to buy here is the breaching of the 7000 level on the DOW. The VIX is still below 50, and needs to reach 60 or higher before this indicator sends out a buy signal.
Gold is still in play; with a breakout above 1000, it should hit 1200.
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