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 5-27-2009
The DOW gained 196 points after a gloomy opening. The Case-Shiller home price numbers were weak, and the markets were down until the consumer confidence numbers came in stronger than expected. The truth is the 54 reading is still negative, just not as negative as the 45 number that was forecasted.
The consumer confidence number reflects the March-April timeframe, which had been in an improving market. It does not include much of the current month of May, where the market has been showing signs of fatigue.
Therefore, we get a happy day to buy stocks, and life is good. Unfortunately, the volume did not support the big up move. In addition, the market is still within the trading range of 8200-8600. Overall, it was an up day surrounded in noise.
Wednesday, we have more housing numbers, and GM will be in play. The GM bondholders had until 12:00 midnight Tuesday to accept the exchange for equity. If they do not take the offer, GM should be filing for bankruptcy.
And from the this is bad, no this is good camp, GM filing bankruptcy, could be a non-event. Instead of the market selling off, we could get a rally, since the failing of GM is already priced in.
The current market play is to take profits at 8590 and buy at 8205. Buy and hold is dead, you need to trade this market.
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