Markets are currently showing for a lower start on Monday on the US side. With the previous week ending with another downward note. Many are kicking themselves for not selling at the peaks in May and holding off investing in June. Its been a traditional belief that its a time when markets pull back but with the rallies we saw, most tried to ignore this tradition and held for further gains.

Well this failed and now its time to look ahead and specifically for Monday, earnings season truly comes to a start.

Oil ended Friday with its biggest weekly loss in 6 months which is good news for gas prices, but bad for those trying to make some money on oil stocks on assumptions that a recovery was going to ignite consumption once again.

For closure on my trade from last week, I did purchase Alcoa (AA) and after a surge on the earnings news, the stock did pop at the open for a bit before pulling back just like I mentioned. I dumped my small holding immediately at the open for a gain.

To recap, I got (AA) at $9.09/share for 200 shares and sold for $9.75/share. I was hoping for a higher profit, but with the immediate dip and weak outlook for the upcoming quarter, it was better to take my stake off the table.

Total profit on Alcoa (AA) = $132

Here is a quick video on what to look for this coming week:

News Worth Reading:
Virgin Blue shares halted amid raising rumors.

U.S. gasoline prices fall to $2.56/gallon.

Goldman Sachs (GS) Likely to Post Huge Profits, Analysts Say.

Stocks hang hopes on tech, financial earnings next week.

I am personally watching Bank of America stock closely. Its expected to be posting weak earnings below expectations which could deflate the price from current levels. If this does happen, there could be a sell off BUT the company is currently in the middle of hearings on how some believe that (BAC) was forced to put Merrill Lynch and take a hit on their stock price during the process. Its going to be interesting to see which direction the stock navigates towards. I am hoping for a buying opportunity on a pull back, but again its too cloudy to see what the stock will do.

Happy Investing!

Aman, MBA

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