Bulls Battle Bears

Okay, with about 12hours before the open to another trading week, many variables can change. But as of right now a few big news are coming into light that can GREATLY move the market.

The first is the huge $66.8 billion dollar offer from Pfizer for Wyeth. Yes, with all the market turmoil we hear about, Pfizer has come up to the plate and probably hit one out of the park with this offer. Wyeth was already up significantly after the bell on Friday and this will be an interesting play to watch on Monday. I would not necessarily trade between these two, but will watch its effect on the health sector of the market. Click for story.

Another is in the beloved, ever swinging financial sector. Well last week, the head of Merrill Lynch was forced to resign after the turmoils of Bank of America. This resignation saved (BAC) about 10 million in his bonus payout being stopped. Well the news today is that Ken Lewis is better off leaving too as the screwed up marriage with Merrill has proven to be a disaster for everyone. Click for article. Will Ken Lewis find the right fit? Will the Banks loose further value? Its all that needs to be watched if you want to make some quick money on the volatility.

If you have not heard, UK is officially in a recession. This was confirmed and the UK pound, which is probably one of the strongest currencies in the world plummeted. Apparently the deflation of the economy has not been this bad since 1980. Will the United States officially come out with admitting a recession also? Some might see that as the first step towards recovery. Click here for article.

One of the “Big 3″ auto companies has come public and INSISTED that its dealerships start ordering inventory. Chrysler is telling its dealerships, to start ordering cars and selling them at deep discounts. I guess Chrysler forgot about current stagnant supply. Here is the article. Another story that was out relating to the Big 3 was the record number of dealerships that have gone bust in 2008. With the worst yet to come according to many “experts”. I’m not sure how the auto companies are prepared to battle it out in the coming 6 months. As I traded (GM) a few times, I have seen (F) come down quite a bit. If it goes even lower, to about $1.30 (yes I’m cheap and not very optimistic) I will take a gamble. Otherwise, these auto companies and all related parts suppliers are really poised to come down further in my books.

Well before I head off. The Asian markets are up and down so there is no real indication on how the US markets are going to start. Also, like I said in many previous posts, again it was reiterated on the news that oil and gold stocks are poised to rise faster than anything else. Watch those plays. I know for myself, I have been playing (XOM), (AUY) and others. These have long term value in a slump. But do your research! Here is one article on the oil earnings.

If you want to listen to an analyst recommend some picks. Watch this 2min video:

Best of luck to all this week!

Happy Investing!

Aman, MBA