chart The three days of negative numbers on the markets seemed to be a mere after though when the markets opened today. Why? M&A’s. What am I talking about? Mergers and Acquisitions. There were a few big deals that were coming through the pipes over the weekend and once they were announced, markets popped on a frenzy of buying. Normally, in the corporate sector, M&A’s would only take place in a robust economy, so with the ones we have been hearing about lately, its probably becoming more concrete that financial crisis of the past have ceased and things are looking ripe for corporate executives.

As I mentioned on the weekend, the news of Iran test firing their missiles lead to a spike in oil prices. The spike was the largest in 5 weeks. If you bought into oil stocks early enough, you would be walking away with some quick profits.

Here is the market summary:

News Worth Reading:
S&P Cuts MBIA Unit To Junk On Structured-Finance Losses (MBI).

J&J buys stake in flu-vaccine developer Crucell.

Online Electronics Seller Newegg Files for IPO

Tuesday looks to be a decent market day. There are no major indicators or announcements that will impact the markets. Its solely up to the consumer to decide if the party will continue or we see a morning hangover. My holdings are still riding nicely but I am debating dumping my (CHCI) shares. I got into the stock at $0.95 and could have sold for $1.05 today which would have been a good one day profit. Lets see where this stock goes tomorrow, my stop loss is at $0.89 which would keep my loss potential minimal.

In terms of a long position I’ll be watching is Potash and Exxon. Both are flat this quarter but have products that are in demand. If the markets retract, I will pull the trigger on these two stocks. I still have my McDonalds, Walmart and Hewlett Packard share which were intended to be sold over the summer, its holding my ability to make larger trades so will either take the losses to offset my overall income or sell for the little profits I can pull this week.

Happy Investing!

Aman, MBA

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