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 9-25-2009
The DOW touched a low of 9666 at 12:40 CDT, still above the 9500-9600 range we are looking for.
The existing home sales were the blame for the sell-off Thursday.
This morning the Durable goods number was the weakest in the last seven months.
RIMM is also down, due to its guidance for the next quarter, and pulling down the NASD.
The run we have had since March has brought back in some of the speculators. The comment I made last week “This is easy”, is still a simple indicator of a short-term? market top.
The STEC trade – I bought the SQR JF calls again at $1.70. This trade is just a dead cat bounce of the $42.50 high of two weeks ago. I am still standing behind my claim this stock is extremely over-valued. This is just another case of playing the market in front of you.
An interesting stock from Thursday’s new high list is HOGS. This is another Chinese company involved in meat and food. The float is only 4 million shares, (29 Million shares outstanding) which gives it a market cap of 570 million. The revenues are $315 million for the first six months (up 28%), and the earnings are $20 million for the same period.
This looks like a great rolling stock good for 3 points and has a breakout at 15.54. It will probably pull back one more time to form a cup and handle and then move 3-7 points.
The next six weeks could be a difficult time for trading, keep tight stops, and take profits quickly.
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