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 10-15-2009
The DOW broke the 10000 level for the first time in a year.
The earnings from Intel and JPM beat the estimates, and more importantly, the forecast for the next quarters were for continued improvements.
The recession is over. Big business is making money. The little guy’s only chance to join in is to buy stocks. The fundamentals do not apply. It does not matter that Intel will make less than one-third the profit of 2007, or JPM has 50% less earnings than two years ago.
The reason to buy is the Greater Fool Theory. If you buy tomorrow, there will be someone to sell to next week at a higher price.
It is time to get on the merry-go-round, and enjoy the ride.
Today’s new high list has 652 stocks hitting 52-week highs while only 12 stocks hit 52- week lows. It is hard to miss a stock that was not up.
The stock that I would focus on is IBM. Play the IBM KF call for November. Otherwise, play a call on the SPY, or buy into one of the ETF’s in a sector you like.
The rally is extending on all fronts, including gold, oil, copper, and most of the commodities. Take your choice.
The gold play is the GCZ AA call at 4.50 for January.
This all suggests going back in. The Greed-Fear-Regret-Envy indicator has Regret leading the way. I cannot say I am convinced this is a sane move, but it is trading the market in front of us.
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