Market Commentary: 10/14/09

Intel (INTC) and JP Morgan (JPM) both reported an amazing result and pushed the Dow above 10,000. The closing above the previous high for both the Industrial and Transport have put me back in the bull camp. Let's take a look at the chart.

The above charts gave us another buying signal. Where will the market go from here is to be determined. All I can do is watch it on a daily basis and report back to you. I've been long the market and stayed flat until I bought KRE on 10/5. If you have been on the sideline, the market has given you a signal to buy again. I wouldn't race out and buy anything. I suggest you stay with quality company that have underperformed the market. If you want bank stock, I suggest buying KRE which on a technical basis still very attractive or buy big name retailer like Walmart (WMT). Another one I am looking at is Weyco (WEYS). A simple thing to do will be to buy all the Dow component ETF (DIA).

I wanted to check up Abbott Lab (ABT) which have done extremely well since I mentioned it in late September.  The company announced a great quarter today and pushed the share higher by 3%. The chart below shows when I bought this stock and when I recommended you to watch this stock. Obviously the stock has done well. If you are not in it and interested, you can certainly purchase it around here but I would wait and buy it closer to the 50 day moving average (blue sloping upward line).

A position that is not doing as good but not that bad is Walmart. I mentioned above that Walmart would be a name to play this upward market still and I hold true to that. The stock hasn't move relative to when I indicate a buy signal. The trend is still up while the valuation remain attractive.

The bull market confirmation came today when the Industrial and the Transport both closed above their previous high. I'll remain long until the market tells me to get out.

Art

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