Bulls Battle Bears

So Monday is a few hours away and there are signs that a further rally is about to take place this week.

Before I get into the news, I’m going to be quick in saying that if this Toxic Buy Back news that is leaking out into the media right now is credible, bank stocks will jump easily on the news. (C) and (BAC) are the two that I’m fully watching from overnight until the pre-market shows its gap positions. (GE) could also benefit from its financial debacle if this toxic plan comes into light. Again, watch any depressed stock and you should see some heavy movement.

OPEC has also come out and said they will be keeping current output levels which is pulling oil prices lower again. On Friday, the expectation was for a push for higher oil prices and a squeeze on inventory and supply but once again, a twist in the opposite direction has the potential to setup another rally.

News to watch:
Japanese stocks rose for a second day amid confidence government support measures will help revive economic growth. Link.

OPEC ministers agreed on Sunday to leave existing output targets unchanged, but promised to enforce those curbs more strictly and said they would meet again at the end of May to review progress. Link.

For decades, one of the brightest banners to fly above Warren Buffett’s castle was his company’s AAA credit rating, one of a handful in the United States. In his annual letter to shareholders he bragged that Berkshire Hathaway’s credit was “pristine.” But the financial crisis is laying siege to even the mightiest balance sheets. Link.

Investors will ponder this week whether the worst of a bear market in world stocks and other risky assets may be behind them as the resolve of central banks on monetary easing helped boost equities over the past week. Link.

Another news item that is related to some stocks is the rise in cigarette tax which comes into play. This will increase pressure for some to quite but perhaps won’t be enough to curtail new smokers and current smokers from keeping up with their habits. A stock that I got into long was (MO) about a month ago and it did come down a bit but has be on a steady rise since, watch the sector for a long term play!

Well these are some of the headlines I’m keeping on my radar at the moment. It should be a good day for bank stocks as current futures point to a good open at the start on Monday. Lets hope for another bull rally.

Happy Investing!

Aman, MBA