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 11-23-2009
The market is stuck.
The DOW has reached the 10,350 level, which represents a 50% retracement of the drop from 14.200 to 6500. (could be negative)
The S&P is within points of its 50% retracement at 1129. (another possible negative)
These levels also coincide with the downtrend resistance lines, which need to be broken for an uptrend to continue. (negative)
Volumes have been declining on the up days and increasing on down days for the last two weeks. (negative)
The decline in the dollar has stalled, which is negative for stocks.
The Gold index (a safe haven for wealth) is stronger than ever, and looks as if it could double from here. (negative for stocks)
The recent rally in stocks has been contained in a select 50 of the S&P 500. Most individuals have missed the rally.
IBM and MCD are almost back to their 2007 highs, even though their revenues are lagging by 10%. If this is a double top, it would be another negative for the DOW.
Overall, the market is facing a traffic light blinking yellow. We have a number of barricades to negotiate. If we break through, we have another 500-600 points of freedom.
I think the market can still go higher simple because the people who held through the March bottom are not going to sell here, and the people who did sell are waiting for any pullback to get back in.
The week before a holiday is normally positive for stocks. Play the stocks that have been the strongest over the last thirty days.
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