chart After hitting new highs for 2009 in the past week, the markets finally ended a tad lower today, thanks to the upcoming Federal Reserve meeting which is being established to find new strategies in fighting the recession, or whats left of it. Although most stocks today were on the lower side, some like Amgen, Walmart, and General Electric were all up due to upgrades. (GE) is now been given another buy rating and estimate of $19/share target.

Here is the market summary for Monday:

With this week looking to be cautious for investors, it could be a good time to evaluate positions from the short and long sides of your portfolio. Personally, if your significantly up on the profit side, I am not a major advocate on riding the greed train and would hope you take profits off the table and enjoy what you made rather than dream of where you could potentially be. Potentially it could never happen.

Economic Indicators:
FHFA US Housing Price Index

News:
Bank of America Agrees to Pay $425 Million for Merrill Backstop.

The Lennar Corporation, the house builder, reported a wider quarterly loss on Monday as it continued to write down the value of land and unsold homes.

Gold Declines for Third Straight Session as Dollar Rebounds.

Tuesday I don’t see any particular stocks I want to get into. I am watching the lower priced stocks in the home building sector to see what losses and going to do to companies bottom line and their potential survival heading into the market rally that could be seen once again for new home builders. There are some great lower priced stocks under $5 and I am just spectating the sector and could jump on an opportunity soon.

Bank of America (BAC) is also in the news again and is planning on paying back its TARP loan to get the government off its back. When (GS) did this a short while back, the markets reacted with an initial sell-off before the stock price for Goldman surged upwards. This could be the same situation as the stock could pull lower before breaking the $20 mark.

Happy Investing!

Aman, MBA

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