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 8-06-2009
The markets put in a quiet day, with the DOW giving back the minor gains from Tuesday. The markets did rally from the 100-point drop in the first hour.
There was weakness in the ADP numbers, and the Challenger, Gray, and Christmas planned layoffs showed the first increase in six months. All negatives but nothing new.
In reality, all the numbers on Wednesday, still indicate weakness. Everyone that has purchased stocks is ignoring this and is hoping the 6500 low from last March was an over-reaction and the real value for the DOW is over 10,000.
Even Cisco’s earnings beat the estimates (which were lowered 46% from last year), but in the conference call they were reluctant to say the economy had turned.
The market makers, GS, JPM, and MS all were up Wednesday. They are seeing inflows into mutual funds, and still see sideline money entering. – MORE COMMISSIONS. People are starting to leave the sidelines.
This reminds me of the 1995 – 1996 NASDAQ market which went up for 18 months, during that time the index rarely had back to back down days. People who waited for a pullback missed this entire period.
The market for Thursday has the weekly unemployment data at 7:30. The 4-week moving average should show thing are getting “less worse”. If the market trades lower, Thursday, use it as a buying opportunity ahead of Friday’s employment numbers. Then use the first hour to close positions, as I expect the big traders to leave for long weekends starting at 10:00 AM, and volume to dry up throughout the day.
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