It's that time again for an analysis of the stock market. Much of this analysis will be based upon a look at stocks in my stock database and crunching some numbers. Ready? Here we go!
Stocks
Love or hate it, the US stock market has dazzled us this year. With the S&P 500 up a whopping 64% since its March lows, can this rally go any higher?
From my view, it appears to be running out of gas. I say this because I feel there is a very good chance that we are hitting a top. I hate calling tops because they are so difficult to call but I've noticed some things that I don't like.
Take a look at Walmart's stock chart and you would think its has no pulse. Since 1999, the company stock has basically gone nowhere trading between $43 and $60. In hindsight, it hasn't been a very good investment for those who own it. But for traders who like rolling stocks, it could be very profitable.
Three stock charts to review heading into the weekend. These are the Dow Industrials ETF (DIA), Nasdaq ETF (QQQQ), and the S&P 500 ETF (SPY).
After General Motors bankruptcy filing yesterday, the Dow Jones Industrial Average will no longer have it as a component. For 83 years GM has been a cornerstone in the Dow Jones Industrials Average but no more. Citigroup will also be removed out of the index next week.
There's been some pretty ugly price action going on the last week in the markets. Can't be for certain that this continues to trend downwards but after looking at some stocks, one looks like a decent buy and that is DryShips (DRYS).
UNG, the Natural Gas ETF is starting to bounce on high volume. This week over 80 million shares have been trading and the stock is trading $16.22 as of close Thursday. Does it continue?
April 2009 will go down as being a very good month for investors. The S&P 500 futures contract rose a strong 9.5% coming off the heels of an oversold bounce. Market movement looks good and bullish.