chart2 Wednesday was a see-saw day with markets opening positive, falling for most of the day before starting to climb back up. Unfortunately, the late day boost in the markets was not enough for substantial gains. There are contradictions from big companies as today American Express CEO said an economic recovery is too premature at this point while VP at JP Morgan held the opposite view point. Really its 50/50 guess as so many indicators are proving to be unreliable and the unpredictable movement in oil and metals stocks is not really showing investors any viable insight.

On Wednesday I was looking forward to Alcoa stock and knew that a sell off would not last. Since I have to deal with too many things in a day, I just put in a limit order for 200 shares at $9.09/share which was much below the previous close. It was not long before this price was met. With so many people already bracing for poor earnings, I felt the stock would sustain in this range and it actually did touch lower to $9/share before making its trek upwards. After the close, Alcoa (AA) did something good, it post better than expected! The stock shot up and was above $10/share and is still trading well above my entry price after hours. I will not be holding this stock for long and will sell tomorrow once its on the open market and all the emotional and eager buyers drive the price up at the open.

Here is the market summary for Wednesday:

Thursday:
Economic Indicator:
8:30AM Initial Unemployment Claims
10:00AM: Wholesale Inventories for May

News:
EMC lands Data Domain with $2.1B offer (EMC).

Amgen’s Stock Gains Lift Co Valuation, But Concerns Remain (AMGN).

Walgreen raises quarterly dividend 22.2 percent. (WAG).

With retail sales Thursday, this sector could be a good one to watch for a quick play. Sadly, the bank stocks still fell today and I wait patiently for a rally to get in on. With the banks coming next week with their earnings, its might be a good thing the sector trims its self before plumping up again post earnings. Keeping it on my watch for Thursday but going to totally focus on this sector next week.

Happy Investing!

Aman, MBA

Related posts:

  1. Bulls Pull Late Charge to Positive Close
  2. Late Day Rally Wednesday
  3. Late Thursday Rally – Friday Outlook