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 8-16-2009
The DOW closed down 76 on Friday, to close the first down week in the last five. We are still above the support at 9150, and the S&P is above 1000.
Over the weekend, there was a news story saying one of the Japanese automakers was increasing overtime to meet increasing demand, probably due to the “cash for clunkers”.
I have heard additional comments about increasing work hours with some other manufacturers.
The market is in the height of the summer doldrums, with many leaving the markets and taking summer vacations before school starts next week. Look for low volumes, and understand it is easier for the big boys to exaggerate moves.
The mix of economic data is making difficult to make a strong call in any direction. Next week most of t he numbers are related to home sales and builders.
The rally we are in is based on the market being oversold from March. We are now back to a 50% retracement of the previous drop. Even copper has made it back to the 50% mark. This is a normal sell signal, but we are not in normal times.
We will wait for the market to break before we jump in.
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