Like the title above mentions, not since the 1980′s have we seen a rally of this magnitude occur. Let me break this down a little more. How many weeks or even months have gone by with minor one day late bull runs on the market with the next day a promised fall back to depressed levels? Today was indeed refreshing.

Finally some organization. It all started late Friday with Obama announcing his economic dream team -which many believe will come up with a productive stimulus package in 57 days. And then today, we witnessed the US govt come out with details of a infusion for Citigroup to prevent a epic failure.

President Bush also affirmed today that Citigroup may not be the only one to get a cash injection from this exiting government. This has been applauded by markets worldwide. With the US markets in rally mode, tonight Asian stocks are also on a rally which should carry towards US stocks again tomorrow.

In my last post I mentioned that all US financial stocks would rally, and just as predicted, they all did. One of my buys was MER (Merrill Lynch) which was up more than 35% today. I managed to snag 350 shares at $9.35 in the morning and sold for $10.90 towards the end of the day. I know that if I held longer, I could have made more, but like I said, greed isn’t going to always make you money. So with MER, today I walk away with $542 in profit on this stock alone.

Another sector I was watching avidly was the auto sector. I am still holding onto GM and was tempted to sell today but then that idea to sell came to belief that I should purchase more. I had a limit price set later in the day for $3 but that never happened. This stock just lifted off on the hopes that the US will bailout the Big 3. This assumption/hope ties back to what President Bush said about how other companies may also get assistance down the road. I have a good amount of shares and will hold for a $5 target price for now.

My main stock today I wanted to get into today was C (Citigroup) but with the super fast increase in the price, I didn’t get up in time to get in low at the pre-market price (at one point it was actually down!) and my limit price of $5.50 never touched that low all day.

I hope readers took my advice last night as to NOT get in too quickly as there was a pull back from the high price of the day which was established in the morning. With so many “market” orders, this can burn a small investor, that is why I set a limit price and wait it out.

For tomorrow:

I’m going to watch CPB (Campbell Soup) as it posted a profit on its earnings and is off its year high. I did mention this stock before but will re-emphasize it for myself to watch tomorrow. Although any buy I make on it would be long term.

Another stock I’m going to watch is HPQ (Hewlett-Packard Company) which also posted its earnings but were not that strong. Its off on the after-hours trading but I think that this company is strong enough to turn around as the economy picks up. The stock price is highly depressed and for a long haul stock, this is something I can probably pick up now and sell for a profit within the coming year.

Along with the two, I will focus on the overall market, especially the financial, tech and health sectors. If there a rally again tomorrow, we might actually be onto something.

Happy Investing!

Aman, MBA

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