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 10-05-2009
The DOW closed at 9487, to finish down for the second consecutive week. The economic data released last week has broken the “less bad than the previous month” standard set since March. The “good” part of Friday’s trade was the market came back from its early morning lows. This was helped by the weakness in the US dollar.
The low on Friday also coincided with the DOW’s 50-day moving average at 9430. A technical trade says, “Always buy when the index drops to the 50-day moving average in an up-trending market.” The question is "are we still in an uptrend?"
The earnings season begins this week with Alcoa announcing on Wednesday. For the rest of the month we will get 75% of the S&P 500 companies announcing their third quarter results. The total of the earnings will give a real value of the current economy.
We are down by almost 5% from the high of eight days ago. The correction the market advisors look for is a 10% pullback, to make a meaningful buying opportunity. I do not think we will see that amount until after options expire on the 16th. The historic October declines are the last week of the month.
Sunday night shows a weaker dollar. This is the only factor supporting the market advance.
I added another 10 contracts on the FFW JB option Friday at a price of $1.05.
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