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 9-15-2009
The market continued its stubborn ways Monday, reversing early losses and closing slightly higher.
The old adage that the market screws the most amount of people, for the most amount of time, for the most amount of money, and then reverses is in full force. The majority of people, mutual fund managers, and advisors, all feel the market has come too far too fast, and should go lower. Therefore, we go up.
The best viewpoint to trade at this time, “Trade the market that you see, not the market the market you think”. The consensus is the market is overbought, and needs a pullback of 5-7%. The market will not sell off until the buyers that are waiting for lower prices give in and buy.
This is option expiration week, meaning there is a paycheck waiting for the big boys that sold the put options (also called insurance) that expire this week worthless. Then next week they can tank the market and get a new round of insurance.
I am still in CEDC and MT, with $1.00 stop losses. The GE puts are selling for a nickel, which translates to GE not dropping below $14 until next week.
Bottom line – trade the stocks that have gone to new highs, to continue higher this week, and take profits at the end of the week.
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