A Bull Market
May 26, 2009 – 10:18 am
The fate of GM is pressing on the mind of the market this morning. This week will tell us the fate of GM. At least that is the buzz on the street. North Korea completed an underground test of a nuclear bomb and fired two short range missiles which certainly made the world stand up and notice this last weekend.
Finally, the Case Shiller home index showed a further fall in home prices in the first quarter. These are major negative factors and the market was under pressure at the opening but within the first hour the market began to improve dramatically. Why? One reason is that GM and home sales are backward looking. That news is well known and in the past therefore the market has priced it in already. The North Korean issue is current and you would think that would negatively affect the market. It didn’t.
We are in a bull phase of the market. It has paused in May but looks ready to move forward.
Good Trading
Steve Peasley
