Well the streak does end today, but Monday was still a great day on the markets with some nice rallies on a bunch of stocks I mentioned you should watch over the weekend.

Both my plays on Monday were bank stocks (C) and (BAC) as well as a gamble in (AIG) that is up so far and hopefully will continue its rise.

Like I said on Sunday, I mentioned that the rally would continue and there would be gap up prices. As soon as the gates opened on the pre-market trades, the stock prices were already surging with people trying to get before the next jump in price. Since it costs a premium to get in on the pre-market, I opted to wait on the sides and waited for the markets to fully open.

My trades were basically the same as last week: 750 shares of (BAC) at $6.20/share which I quickly sold off at $6.86/share.

Total profit on (BAC) = $495

On (C), I was able to grab more shares thanks to the lower price. I placed an order at the open for $1.97 which filled for 2500 shares. This stock I was only looking for a small up in price and initially was happy to get out at $2.20, but the volume on the upside kept pushing the price higher up. I did put a sell order for $3 which never hit but when I got to the computer in the afternoon again, saw that the price was steady around $2.45 and sold there.

Total profit on (C) = $1200. (This represented a 24% gain today! from my initial!)

The third stock which I’m not to easy about getting into was mainly on the upside potential from current prices. The stock was (AIG). With all the negative attention on the payouts, the fact that the government already controls 80+% of the organization, I’m sure the money will see itself to the tax payers. Also, with some positive words from analysts. I felt that this stock might have some steam to get higher.

My buy in was at $0.71/share on HEAVY upside volume. This stock was just taking off early in the day and then remained flat in the low $0.80′s. My position was small compared to others, but I can see my 7500 shares paying off soon, I hope. Since I did not sell, I cannot claim a profit.

The summary for Monday:

Also, another great segment that was on Bloomberg earlier Monday was in regards to investment strategies. There are some stocks to look into during these bounces and according to this analyst, bargains on the market.

Now news to look towards on Tuesday:
Bank stocks might take a breather on Tuesday with the run up last week and Monday, there might be profit taking by larger holders which could pull the price down. If this is the case, look for another entry point on bank stocks. (GE) had a similar run up Monday before a pull downward to its opening price levels. Again, everyone needs to profit at times which can introduce a new chance to get in.

Alcoa saw its stock melt in after-hours trading on Monday, as the Dow component slashed its dividend 82.3% and announced a stock offering in an effort to said to bolster its cash position. Link.

Shares of Blockbuster Inc. (NYSE: BBI) were up 16.92% on Monday after Hollywood Entertainment founder Mark Wattles disclosed a 5.7% stake in the company. Link. It was only last week when there was talk about this company going under. In one week this stock has gone up from its low of $0.13 to over $0.73/share.

Wal-Mart Stores Inc. plans to start selling more than 80 new products, including strawberry yogurt and thin-crust pizza, under its store brand to attract U.S. shoppers seeking lower prices. Link.

Happy Investing!

Aman, MBA

Related posts:

  1. Positive Start to Week
  2. My stocks for the week of Dec 8th:
  3. Week Ends Positive on Earnings, Will Rally Continue?