Hello to all. The market has been pretty choppy. As I said earlier, I have taken a cautionary approach to the market for now. That being said, I did buy some Boeing (BA) this morning at a price of $51.65 per share. The chart on BA looks rather bullish. I know the stock hit a 52-week high not too long ago, but this stock looks like there is some good buying behind it. I have a stop at $49.94 in case of any downdraft. Otherwise, I am keeping a low profile in the market. That's all for now.
Early Afternoon Update
BA has experience some selling today. I am still long the stock. I feel that much of the selling is due to yesterday's gain. I am curious to see what happens in late day trading. If the stock continues to be weak in the late afternoon, I will assume that we are not working off yesterday's rally anymore. There could be something more serious at hand.
Markets Closed...
Ouch! BA did not show much strength today. I was pretty confident that BA had the strength to move up. I did not expect the stock to reach a new high but maybe up to $52.50 or so. I am still long on the stock.
The Market just seems to be reacting to bad news after bad news. Here are some examples of news items that came out today:
- a GM warning
- a Treasury Dept. ruling that companies won't be allowed to repurchase stock or pay dividends with repatriated foreign earnings
- a 3.5% surge in crude oil ($48.04/bbl +$1.67)
- Verizon Communications (VZ 37.00 -1.23), which was downgraded by both CSFB and Robert W. Baird
- An FDA warning about Pfizer's (PFE 25.37 -0.66) controversial painkiller ads
I am not much of a forecaster. Maybe I got caught in a death trap today? You know, the market shows strenth but it is really bleeding like hell. You buy on strength only to get whipsawed. Today, BA showed huge selling in the late stage on the market. Not good...
John Murphy's Market Message Jan 13, 2005 had some interesting things to say too.
"It looks to me like the downside correction is oil is over and that it's headed higher again. Energy stocks, which are today's strongest group again, are leading the commodity higher."
"Oil service stocks remain the strongest part of the energy patch."
The NYSE Tick was +77. That is pretty much a nonevent. Can't say that I am too excited about the market right now. I await tomorrow's news and will make and needed adjustments.
bonne nuit
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