chartSo Monday starts off with yet another positive close on the markets – barely but still in the green. This has officially been the best 2 week really since the year 2000. So for the pessimists looking at short time falls, the stats are speaking for themselves! The Dow average has moved up 12 percent in the two weeks thanks in part to companies including Caterpillar Inc. (CAT) and 3M Co. (MMM) reported earnings that beat estimates and a gain in existing home sales added to signs the recession is easing. A word of caution, with a rally of this magnitude, there is a potential for a pull back. Right now there is steam in the engine to push further with positive economic numbers and earnings, but a break will come soon.

Going back to the housing numbers today, the Commerce Department announced that U.S. new-home sales rose the most in 8 years in the month of June. This is a positive indicator that the deepest housing slump since the Great Depression is starting to stabilize. Mortgage rates were low and homes prices cheap, June could have been the best time to buy. I consistently told potential property investors to look, book and lock in rates. Hopefully the summer will cause a dramatic increase in prices and rates for any remaining potential bargain seekers.

I did not trade on Monday. I am still holding my (VVTV) and also the (ESLR) that I mentioned to look at a week or so back. I got into it at $2.04 and its been on a steady rise. Both are providing a good potential profit which really does not pressure me to trade like before.

Here is market summary for Monday:

Looking at Tuesday:
Economic Indicators:
S&P/Case-Shiller Home Price Index
Consumer Confidence

Earnings worth watching:
(PCX) is announcing earnings before the open on Tuesday. Watch it if your holding the stock. I bought at this price range and saw my holding dip to $5 before climbing back to my original price. I am hoping for a rise after posting better than expected. Currently they are pegged to post a loss of $0.47. Anything better is Christmas.

(WDC) Western Digital Corp. $0.27/share
(PNRA) Panera Bread Company $0.64/share
(MEE) Massey Energy Company $0.17/share
(FBC) Flagstar Bancorp Inc. loss ($0.16)/share
(DWA) DreamWorks Animation SKG Inc. $0.17/share

News:
Amgen Second-Quarter Profit Gains on Arthritis Drug (AMGN)

Starbucks to match 401(k) for 2009. (SBUX)

GM Treasurer Says GM On Track to Pay Back Taxpayers.

Happy Investing!

Aman, MBA

No related posts.