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 10-19-2009
The DOW closed the week at 9995, failing to hold the 10000 level. 61 companies of the S&P 500 have announced, with 79% beating estimates, 11% matched and 10% have fallen below.
The DOW has room to edge another 500 – 600 points before hitting resistance, while the S&P has hit the trend line drawn using the highs from 2007 and 2008. A breakout this week is probable. The NASD broke through its downtrend five weeks ago, and has 2230 as its next resistance.
The IBD 100 gained .3% for the week, and the IBD Market Pulse is barely holding on to the “market in a confirmed rally” outlook. This should strengthen this week.
Earnings continue this week with another 75 S&P 500 companies and 11 DOW companies reporting. AAPL reports Monday after the close, Tuesday has KO, DD, PFE, and UTX. Wednesday has BA, FCX, MS, and WFC. Thursday has MMM, T, MCD, CS, DOW, and MRK. Friday closes the week with MSFT reporting.
The earnings and forecasts will be under the microscope while investors look for reasons to enter the market. There are many on the sidelines that want back in.
The dollar continues its weakness, which in turn supports higher markets.
Gold continues to be a profitable play. The GLD KT option at $4.45 has a quick $2.00 profit, if gold pops this week. Use a $1.00 stop loss as maximum risk.
The new high list has GOOG and CEDC. Use options to play GOOG, and buy CEDC stock ahead of its earnings on November 4.
MT is a good way to play FCX.
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