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 8-10-2009
The market loved the 250,000 lost jobs on Friday. The unemployment rate dropped to 9.4%, because 400,000 people on employment threw in the towel and quit looking.
Therefore, to continue the buy-now philosophy, the downtrend lines have been broken and the new numbers are at the 50% retracement of the overall downtrend. The DOW target is 10360, (which I will go to 10600), the S&P is 1123, and the NASDAQ is 2064, (and I will go to 2258).
The big runs will be in stocks like GE, AA, and CAT. All are stocks that can grow on China’s rise. As much as I cannot stand Cramer, he is right about the Chinese leading us, (helping us), out of the recession.
The new high list is full of stocks above their 52-week high. ISRG at 230 is at its 10 month high. In the next two months, it will wipe out the 280 high, and will make the new high list. (The historic high of 360 has been off the charts since 12/14/2007.)
Put money to work here. There is still money to enter behind you.
Just be aware the good times are far from being back.
Know your exits, and be happy taking profits. The next leg down will be swift, and just as painful as the last.
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