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 3-13-2009
The market was up again yesterday, with the DOW posting a 239-point gain. This has taken the DOW from the lower Bollinger band to the short-term moving average. Technical traders are using last Monday’s low off the 200-day moving average as a bottom. There are a number of lines of resistance in front of any moves higher. We are still in a short-term downtrend as defined by the highs of the last 7 months. This is at 7600. The intraday low and closing lows fall in front of that number. The last guess is the psychological number at 7500, which is probably the strongest.
The strength we have seen is in line with a 1000-point bear market rally. The bottom at 6500 needs testing again. This can take a month or two. In the meantime, profits can be made. The question is how long do you let them run. There are many people looking to get out at a higher level. How soon does the pain turn to greed?
ISRG ran to its upper range at 103-104. A breakout here makes 109 and 115 as the next targets. With option expirations next week there are a few interesting plays. I have been selling puts as a way to play the uptrend.
Gold is still in a good chart pattern by my interpretation, but I was cautioned yesterday about this could also be a double top.
Continue to play this oversold market. The last hour should show how many traders will stay in their trades over the weekend or go to cash.
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