chartThe bulls are out and charging for the first day of June. The market in general was high on positive sentiment which pulled the S&P to 7 month highs. This was all attributed to personal income, manufacturing and construction beating economists’ forecasts. Treasuries fell for the first time in three days and the dollar dropped to its lowest level of 2009.

All this positive news was not shaken by the obvious bankruptcy of General Motors (GM) that almost everyone was aware of. It seems that (GM) will be restructured and common shareholders will be wiped out. Those that held on, I don’t know the logic you all used, but truly hope you did lose too much money.

Up more than $0.40 in one month, the average price of Gas in the US is above $2.50. This is a sign that demand in the summer will pick up as supplies were maintained at lower levels. Will gas hit $3? Its unlikely, but again, a 40cent jump in one month was hard to believe but happened nonetheless.

Now, I would not be who I am if I did not become a vulture during the downfall of (GM). I got into the ill fated stock knowing fully that there would be a dead cat bounce from the bottom. At the open, everyone sold off in panic (similar to (FRE), (FNM)) which caused the stock to quickly hit $0.50 before moving up. I got into the stock at $0.60 (2500 shares) and tried to ride the sucker to $1. Sadly, it did not go up that high and I keep a tight stop loss which I raised as the stock pulled up. As the stock began to retreat, I managed to dump all of it at $0.85 which was the best I could do.

Total profit, probably for the last time with (GM) = $600. RIP (GM).

It was a long time coming with General Motors. I am not going to rant about the many aspects this company was on the road to failure. But on a positive note, its a stock that made me some good money in the last 6 months I have been blogging my results.

Here is the market video summary for Monday:

Looking at Tuesday:
Economic Indicators:
7:45AM Weekly retail sales
10:00AM Pending Home Sales for April
4:30PM Light motor vehicle sales for May

News to Read:
Crude Oil Trades Near $68 After Rising on Demand Recovery Signs

Standard & Poor’s said it will replace General Motors Corp. (GM) with post-secondary education company DeVry Inc. (DV) in the S&P 500 index after the close of trading Tuesday.

Tuesday I will be watching for a possible rally on the financial stocks. They did fall flat Monday. (BAC) just had a ruling of $1.6B reversed by California court which takes them off the hook of a lawsuit from 2006. If an opportunity comes, I will get into (BAC). Right now, I have my holding in (C) from a few weeks back and its literally flat. With the company now delisted from the DOW as of June 8th, it might take a little longer for the upside rally.

Hope you all profit this week!

Happy Investing!

Aman, MBA

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