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 2/5/2009
The market is waiting until tomorrow's employment numbers to be released, and is using the bottom from November as today's support.
This morning's unemployment numbers were awful and the expectation is for tomorrow's unemployment number to reach 7.5%. I am looking for a number closer to 8%.
When this data hits the market, we should head to lower levels back to the 7200 - 7400 area. That was the intraday low in October and is only the first stop.
The stimulus package is the only thing holding the market from
selling off in the short term. However, with each day that Obama has been in control, it is growing more obvious that he has no idea of
how to order the economy to turn around. The truth is only time
and a housing rebound will bring things back. The current package will not reach the average person's pocket book, and will not stimulate spending on anything from car purchases to upgrading to housing that is more expensive.
The outlook for trading is to play the daily the mood swings and go to cash at the end of the day. If you are not in a position to trade this way, then cash is king and locking up your capital for a one year in a CD will probably return better profits than the stock market or bonds.
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