chartLike a scene of a Formula 1 race, the markets today were in the lead heading into the final lap before hitting the wall and ending deep into the red. The swing from the top to bottom in the last hour pull the stock market down roughly 2%. What was the reason for this? Well, thank the Fed and the reaction they caused after their two day meeting. We all see the news as being good today, but that is the thing, people always sell on good news and today was classic textbook. The good news was that the economy is truly on the mend and improving and better for many, the interest rates will remain and their ridiculously low ZERO.

For me, I finally pulled the trigger on a day trade. Having time to scan the news sites and sort out what I wanted to follow, I got wind, as did so many other people, about a thought that Microsoft might be interested in Electronic Arts. This had me watching the stock and I got into it before the hype pulled the stock price further. Lucky for me, I got into the stock (ERTS) at $19.25 for 200 shares and quickly walked out at $20.00 for a small profit.

Total profit on (ERTS) = $150

Here is the market summary for Wednesday:

News:
Red Hat beats profit, sales estimates (RHAT)

Bank of America, JPMorgan, Wells Fargo Cut Some Overdraft Fees.

Oil fell 4% today on a surprise rise in the inventory. This should trickle down to cheaper gas for Americans while for some reason, Canadian gas prices remain unjustly inflated.

Tomorrow (RIMM) will be announcing earnings and all are expecting good news. Personally, this is easily a $100 stock and will touch that price within the next 10months. The company was able to pull a profit during a time when the economy was in crisis, it should be a cake walk for the company to profit as businesses rebound and start to update their infrastructure with newer smart phones and general consumers get into the smartphone sector too. As these rise, it will be wise to watch the American carriers (sprint, verizon, AT&T) for profitable plays as they make money off all the new data plans being established.

Looking at Thursday, I will be eying (CHCI). This stock has be interested in many ways. I did play this stock a few times in the past and a friend of mine is sitting on a large pile that he got for $0.12/share. Fundamental wise, the company has paid off a portion of its debt, the housing sector is improving and this low priced stock could move up. If I can, I will wait for a $0.90-0.95 buy range and just hold for a 20% gain. I can see potential of this happening soon as current holders sell for profits and new buyers come into the game.

Happy Investing!

Aman, MBA

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