chart The markets were down on Monday after a strong sell off on the Asian markets last night. But do not take this as bad news, the month overall ended up higher once again and yet again, the rally continues. Its quite possible that the markets could have been lower today if it was not for some huge deals that took place over the weekend. One of the biggest was entertainment giant (DIS) Disney who has acquired Marvel (Comics) for a hefty price that makes everyone happy financially.

In terms of trades, I just held my ground on the stocks that I currently hold. I am tempted to dump my Freddie Mac (FRE) but with the pull back today, am willing to wait a few days to see if a potential push to the upside can inch out a few more dollars in gains. I know its a greedy position, but the company does have a lot of impulse buyers still sitting in line trying to pickup shares hoping to get rich quick. That train left more than a week ago.

Here is the summary for Monday:

Economic Indicators:
For Tuesday, keep an eye on the Truck and Auto sales numbers. Ofcourse both will be higher thanks to the recent cash for clunkers promotions, but it will be interesting to see if any guidance will be given on future sales.

With a lot of people still unable to get into cars during the promotion, it will be interesting to see what motivational tactics the automotive sector will utilize to get consumers to pay essentially more now (post promotion) for a new car and help maintain production output.

News Worth Reading:
U.S. Bancorp Buys Citigroup’s Interest in Credit-Card Portfolios.

Wal-Mart to sell goods from other vendors on Web (WMT).

“Clunkers” may boost U.S. August sales; investors look beyond.

Tuesday I will be watching (PIR) and (TD). But have been given upgrades which to me allows for a initiation in watching the stocks. I did play Pier 1 during the market crisis and wish I still held the stock. But if any retractions continue, TD is a great Canadian banking stock and I will certainly add to my long term portfolio.

Another stock that you might want to look at is Tiffany (TIF). This stock did pop upwards recently but it could be a short cover. The stock has good reason to come down 10% from current positions because even with the companies cost cutting and slight improvement in demand is not signs of “good times”. Be cautious if you hear hype on this stock. (TIF) will be a good long hold once the stock starts pulling back.

Happy Investing!

Aman, MBA

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