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 5-26-2009
The DOW dropped almost 100 points in the last hour Friday, to close down slightly.
We are still trading the same 8200-8600 range of the last couple of weeks. The DOW should put in an up day tomorrow as traders establish new positions.
This week all eyes will be on GM and the bankruptcy that is sure to come, and we will be watching the dollar. The dollar has been weakening for the last month, and there are fears the S&P will lower the rating on the US. The negative to stocks on Friday was the S&P giving a negative rating to the UK. If the UK can be downgraded, can the US be next?
In line with these moves, we go back to gold. Gold has rallied back to the 950 -960 level and is in a chart formation that would make a breakout above 1000 be the beginning of a major up move. The next target would be 1200 and then 1400.
The down side for the DOW is 7900, and then 7500. This would coincide with a VIX reading in the 48 -50 range.
Stocks have pulled back to a level that could lead to more selling. I am not as comfortable opening new positions, and may start to raise a little cash in the short term.
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