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 9-10-2009
The market had another flat day with little change.
The DOW is trading within a 1000-point channel with the current high at 9800 and the low limit at 8800.
The market is trading inverse to the dollar. The dollar made its two-year high in early March, at the same time the market made its low.
The Chart on the Dollar makes an interesting study for the US market. Reading the 10- year chart on the US dollar, the dollar made a high in October 2000, at 120, and the DOW made its historic high at 11,750.The dollar remained at that level until March of 2002, then declined for the next six years. This was six months before the DOW made its low of 7100 in October 2002. The market gained for the next six years, until October of 2007, at 14,200.
The dollar reversed and bottomed at 70, in March 2008. Then reversed and ran to 90 by November 2008.
The DOW began its run six months after the dollar peaked, and finished its run six months before the dollar bottomed.
In March of this year, the dollar peaked, and the DOW bottomed. Since March, the DOW has rallied, and the dollar has dropped.
The chart tells the story in more simple terms than this reads.
The point is to watch the dollar for weakness, which allows the market to gain.
We print more dollars to weaken our currency, and our markets go up. The problem is car prices double, and the purchasing power of our dollar is cut in half.
This will show up as foreign companies buy US companies, because they are so cheap.
IF THIS IS THE WAY OF THE FUTURE, YOU CAN BUY OUR MARKET, DOUBLE YOUR MONEY, AND TEN YEARS FROM NOW, YOU WILL HAVE HALF THE WEALTH YOU HAVE TODAY.
Meanwhile, I am sitting on the sideline until I am convinced of the market direction.
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