The market continued to march higher this week. The Dow gained 78 points, a gain of 0.86%. My watch list now contains 9 companies compare to 11 of last week. Important introduction to this list is Pitney Bowes(PBI). The company fell 12% on Friday after announced earning of $0.55/share and the consensus was for $60/share. A missed of 8%. Read this post for some detail on the stock. Here are the companies on my watch list as of July 31, 2009.
Market Commentary
Market Commentary
It has been an amazing market for those on the long side. The Dow Theory buy signal ,which not many investors follow, had given this market a run. With a big extension to the upside and a big overbought condition, many traders are beginning to build short positions. But Keynes once said "The market can stay irrational longer than you can stay solvent" and so the market could head higher, triggering the shorts to cover. It doesn't matter what the underlying fundamental are, we can't predict or explain the market's movement. The market is forward looking but human are typically backward looking.
Coppock Curve
The end of the month gives me an opportunity to revisit the Coppock Curve or Coppock Index. July was a strong month and my indicator rose 18.7 points to -357.8. Below are figures of the indicator since April 2009.
4/30/09: -386.0
5/31/09: -380.5 (change +5.6)
6/30/09: -376.5 (change +3.9)
7/31/09: -357.8 (change +18.7)
The buy signal was given at the end of May which mean you could buy on June 1st. Let's examine what happen if you did just that. The Dow was at 8,501 and is now 9,171. This is a good 7.8% move. I wrote about the changes at the end of May.
Recent Analysis and Commentary
I took a position in H&R Block this past week and would like to acquire Automatic Data Processing at the right price.
Art
Print this post
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.