Stock Market
All comments and Stock Market Analysis are made by Guy Brumley. Guy has been trading the Stock Market daily since 1992.
Trading, evaluating stock prices and predictions
Stock Market Commentary 11-13-2009
It has been a week since my last post. The day the employment numbers came out. The DOW closed slightly above the 10000 level on that day. The past five days have seen an upward bias on lower volumes (not good). The IBD market pulse is waiting for the follow through day to confirm an uptrend. The market is producing a lot of noise, and I have been waiting for some of the charts to show a breakout through resistance or a reversal of current trends.
The DOW is bumping against resistance derived from highs of the last two years. If it breaks above, we should go to 10900.
The SPX just broke through resistance in the last week, depending on how you derive the line. It indicates 1200.
The NASDAQ broke out of its downtrend two months ago, and suggests higher levels, and the dollar index is hugging its support at 74.77.
The dollar has been moving inverse to the stock market. This is the first chart to watch for market direction. If you asked a sixth-grader to read the chart since 1973, his answer would be the dollar should bounce. That simple.
The argument then goes a stronger dollar would reduce prices on oil and commodities. Then the stock market goes up?
The question becomes “What time frame are you looking at for a return?” If you have 10-20 years, are stocks your best bet? Or is gold a safe haven for your money? Do you bet on the US like Buffet and Gates?
If your time frame is shorter, say 2-5 years, do you need to look at global stocks or international markets?
Or, is the answer to invest in the new companies that have the ability to grow 10 or 20 fold?
I think we continue upward, but I am having a difficult time finding a comfortable stock.
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