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 9-30-2009
The Dow gave back 47 of the 140 point gain from Monday. Wednesday has a couple indicators that could throw the market. The ADP payroll numbers and the Chicago Purchasing Manager’s numbers are both released in the morning.
The problem with all the data released this week is how it will be digested.
The economy is (or was) in a recession, and these numbers reflect past performance. The entire rally since March is people trying to be first back in. If the numbers are better (less worse) than the previous month than it may mean things are coming back. The 64 thousand dollar question is “back to what?”
If the economy continues to slow down for six more months, or six more years, how much money can you make buying here? Also, if the dollar has 20% less buying power 5 years down the road, and you have made 10% on your IRA, you are worse shape heading into retirement, and are behind the curve long term.
The Hot Stocks continue to be in the international market. Whether it is China, Brazil, India, or Russia, all these ETF’s have been outperforming the US.
I am struggling to find a trade this week, and due to some personal issues, I think it is a good week to wait until Friday’s employment numbers.
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