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 10-27-2009
The DOW gave back 104 to close at 9886, and the S&P lost 12 to 1067. The dollar gained approximately $.75. The daily volumes were lower on the NYSE, but higher on the NASDAQ. The lower volume on the NYSE rules it out as a distribution day (per IBD), while the higher volume on the NASDAQ adds to the distribution count.
The short term targets on the DOW are at 9867 short term MA, 9665 intermediate MA, and 9562 trend line support. The S&P numbers are at 1042 support, and the dollar has 76.40 and 77.03 resistance.
Gold showed weakness as the dollar gained.
What is the fear in the market? Inflation? If inflation is the fear, it is not from pricing power. It would be from printing too many dollars.
I do not think companies will be quick to raise prices in an economy that has 10%+ unemployment and weakness in housing prices. Where will people get the extra money to buy? Not from the bank.
The smaller banks are living on the edge. They are all one bad loan away from being shut down. (As a sidebar, make sure your money is protected properly at your bank.) Look for more bank failures over the next three months.
The stocks I listed yesterday are still on the focus list. The market may fluctuate for the next week until the next employment report on November 6.
Do not get shaken by the noise in the market.
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