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 8-18-2009
The Dow dropped 186 points Monday, while the S&P dropped 24, and the NASDAQ dropped 54. As I write this, the Asian and Japanese markets have managed to turn positive.
There is a sudden fear that the market has come too far too fast. There is a story on CBSmarketwatch tonight, stating the ValueLine August 21 issue has lowered its stock equity allocation to 60 -70%, its lowest level since 2000, and its second lowest in history. Their fear is the earnings and economy necessary to support these numbers is so extreme that when reality hits the correction could be swift and severe.
Meanwhile, this is option expirations week, so we do expect one-day ugly, then one-day pretty.
If you have profits, take some. You never go broke taking a profit. You can always buy again.
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