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 8-12-2009
The DOW gave back 96 points today on low volume. The first two days of the week have been on some of the lowest volumes of the year.
I am still looking for the market to go higher, and a retracement to 9120 maintains the breakout of the old trading range. The Fed will announce its statement on monetary policy and interest rates, Wednesday at 1:15 CDST. I do not expect any changes, meaning another non-event.
This rally needs to resume by the end of next week. The faster we run, the higher we go. We are probably getting chatter due to option expirations next week, Friday.
The closer we get to September, the harder the climb will get. The bar for third quarter earnings has to be higher than last quarter, and could lead to earnings warnings.. This is a setup for failure and will most likely trigger the next down leg for the markets. Therefore, the clock is ticking.
This market is back in the noise phase, there is nothing to read from the last few down days. Wait until we get a major volume day to show a market direction. The big boys cannot hide their purchases or sales in low volume.
The new high list is getting cluttered with stocks like TLAB and SBUX. These are stocks that are higher than 52 weeks ago, but much lower than their high of two years ago TLAB at six was 14 and 70 in 2000, SBUX at 19 was 40.
Look to play a put option on ISRG. It is a gap play and needs to return to 160 before it goes higher.
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