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 5-19-2009
The market made strong gains today with the DOW up 235 points. The gain was meaningless, for we are still bouncing between the narrowing trend lines at 8250 and 8600.
The stimulus was from the earnings report from LOWES, and the National Association of Home Builders. Both were poor but better than previous.
The NAHB sentiment number was 16 up from 14, but still below the 50 number, that indicates expansion.
The earnings from Lowes were down 22%, with the improvement in the gardening department. (People are starting to garden.) A look inside the numbers, show inventories at Lowes were up 7%, meaning they still have too much product sitting on the shelf.
Tomorrow, we have Home Depot’s earnings and housing starts.
Market volume was weaker, but advancing stocks led declining 2650 to 290. This ratio is almost at the 10 to 1 ratio that has initiated the beginning of previous market rallies with a 90% success rating.
One comment, after market, was the individual investor is jumping back in to the market fearing to miss the next rally. Greed is a great emotion.
On a side note, the two stocks mentioned yesterday, ISRG and FCX that were pushed down on Friday, (closing at lower strike prices); both came back $3.50 today. An easy gain.
Watch for the market to break above 8600 or below 8200 to show a real direction.
Meanwhile this is just noise.
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