Monday was a a continuation of a great rally on the markets. Although overall the boards remained flat or negative, sectors like the financials pulled out heavy gains again on further upgrades and praise from outsiders.

There was good volume on all ends of the market and it seems like more people are starting to move their money into what was once risky plays. Hopefully you are not just putting all your money in one sector or specific stock, especially if its a long position. That is crazy in any market!

Three of the big banks, (JPM), (C), and (GS) are poised to post earnings which are now being expected to be better than what was expected. Although many stocks are supposed to post losses (which have been priced into the majority of stocks), its going to be interesting to see how and what sort of post-earnings rally these banks produce once the numbers come out.

On Monday I did get into (C) for a position of 500 shares at $3.33. I initially had a sell order at $3.63 but took that off my account as I want to see how this position plays tomorrow with earnings. I do have my stop loss set at $3.75 but hope for good news tomorrow and the chance to get in on another position.

Here is the summary for Monday:

Tuesday Watch:

Earnings will be posted for the following stocks:
(GRRF) -0.54 (CBSH) 0.51 (CSX) 0.51
(INTC) 0.02 (JNJ) 1.22 (LLTC) 0.21 (GWW) 1.09

Now like I said, all eyes will be on the banks and with Goldman Sachs first to report after the close on Monday, this can and will be a pivotal moment on deciding on putting a position into banks once again.

After-hours on Monday, (GS) did post a monster profit and the stock is only down on the fact its selling more shares to raise capital to pay down debt. This seems like a really good indication on what the other banks should react like as their earnings come out. (C) is going to report on Friday.

Indicators:
7:45AM Weekly retail sales
8:30AM Producer Price Index for March.
8:30AM Retail Sales for March.

News To Watch:
(GM) General Motors Corp. shares fell as much as 19% on Monday in the wake of a report that the troubled automaker has been directed by the U.S. Treasury to lay the groundwork for a bankruptcy filing by June 1. Link.

(MET) MetLife Inc. said it won’t participate in the U.S. Treasury Department’s Capital Purchase Program, as the insurance and financial-services company said it is well-positioned for the long term. Link.

Shares of big banks Citigroup Inc. (C) and Bank of America Corp. (BAC) rallied Monday as JPMorgan said first-quarter results of some larger banks will likely reflect “solid revenues led by mortgage banking and capital markets.” Large banks also continued to gain following Wells Fargo & Co.’s (WFC) announcement last week that it would post better-than-expected first-quarter results. Link.

Many U.S. hotel chains like to offer USA Today, The Wall Street Journal or their local newspaper as a courtesy to guests. Marriott International Inc (MAR) will offer a different courtesy: no paper at all.Link.

Like I mentioned earlier, watch the earnings before markets open to gauge a guidance. Earnings season is when good money can be made! I know that in the first few weeks of each quarter, my income generally is higher compared to the rest of the weeks.

Happy Investing!

Aman, MBA

Related posts:

  1. Monday Winners!
  2. Modest Gains and Better Earnings.
  3. A Step Back Tuesday