chartVery nice returns on the markets today and yesterday have pushed markets to higher levels. The US Dollar today was weak which pushed gold to absolute new highs. There was a moment when the US dollar did pull up in strength which pulled stocks lower, however, this was temporary as the Australian government did raise their lending rates which deflated the dollar towards the end. Tuesday eyes were also set on the earnings of YUM brands (YUM) which easily beat the estimated numbers. This could be a wider expectation for other fast-food establishments who report later down the road. A good assumption in a slumping economy is that with more unemployed people, smaller budgets, people will tend to move towards more budget friendly (value meal) type places like Taco Bell, McDonalds, etc.

With the rise in gold prices, some are expecting a price of $1300 on the horizon. On this news, I was already watching Eldorado Gold (EGO) which was gapping up before the open. With the dollar weak, it was a solid play and managed to get in at $11.57 for 200 shares. It was a small play which I sold later for $12.09. If the hold was longer, I’m sure the gains would have been larger, but for me, it was a quick play for for some quick cash.

Total profit on (EGO) = $104 in roughly 2hrs of holding the stock.

Here is some markets summary for Tuesday:

News to Watch:
Sunoco To Halve Dividend, Idle NJ Plant, Furlough 400 Workers.

National Retail Federation predicts holiday sales will fall.

MGM Mirage Cuts Condo Prices in Las Vegas

Wednesday I will watch the gold sector once again as well as the financial/banking stocks. With earnings starting again, it will be good to watch the morning news to fully utilize and run-away plays where you can jump onto a stock and pick off a few percent gains.

Happy Investing!

Aman, MBA

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