Freddie Mac doubles!
filed in My Investments on Aug.10, 2009
Markets struggled all day to pull above the red today yet managed to come close after hitting lows in the afternoon. I have time before my next case starts and just wanted to write something up quickly. With the S&P 500 up over 50% in a really short time, its expected to see a slow down in pace. Another reason for the red today was the upcoming Fed meeting which will run for two days and many investors will utilize for influential remarks on the future direction of the markets and word on if the lending rate will remain a historic zero. There is no specific reason to panic as most are expecting a further upward trend for the short-term to say the least.
Now to the reason for my title. I mentioned last week that Freddie Mac would be on my radar for a possible swing trade. Well that was a factor that should have put the stock on your watch list. Monday the stock reported its earnings which were a PROFIT for the first time in years! I don’t know if its lady luck or what, but I managed to snag 2500 shares at $0.73 and today the stock closed at $1.69. The stock is up and I have made some great profits. Is the stock still worth buying? Certainly. The outlook does look positive and with some pull back on the simple fact many will take their profits, the stock will go up. I am not going to take my profits off and just let this ride. I have made a killing on VVTV and now FRE. I love the stock market!
Here is the market summary for Monday:
Tuesday:
Economic Indicators:
Q2 Prelim-Productivity
Wholesale Inventories
Wednesday:
Economic Indicators:
Crude Inventories
Federal Interest Rate Decision
Treasury Budget
For the next few days I will just be focusing on work and unable to post for Tuesday night. Hopefully you will focus on the stock trends. Be cautious of any unexpected Fed announcements. It seems like interest rates will remain unchanged but it will be interesting to hear some sort of guidance. The Fed has pumped trillions of dollars into the markets and it will be interesting to see what they feel about the current markets. (MRK) and (MCD) both were moving higher as Merck was given an upgrade to a buy. Its a little too pricey for my blood and the movement is more suited for a long-term investor. McDonalds did well on its earnings and after holding the stock for more than 6 months, it might be time to dump my shares.
Another thing to think about this week..will the government call this upward trend a recovery? We will know in a day or two.
Happy Investing!
Aman, MBA
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