chartThe major markets all edged upwards over 1% each after the Treasury sales of 7 year notes wrapped up along with an expected OPEC stance to hold production levels moving forward. There was some lower news from the new home sales data, but the market shrugged it off as it moved upwards during the day.

Since OPEC decided to hold its position, energy stock did rise and helped carry the markets in positive territory. A couple of bank stocks like JP Morgan (JPM) and Bank of America (BAC) were up after outlining plans to further increase capital levels by exchanging 200 million shares of common stock for preferred.

Today I was unable to trade. I had to take care of a closing of a house purchased in the mid-west. This is the first ever house for me (in the literal sense) as I have lived my entire life from apartments to now 5 condos in my possession. A home is a wonderful addition and with the current low mortgage rates and ability to significantly negotiate lower offers, the deal was a good one and the process was quick and painless.

(MAPP) was up another 8% today. I wish I did not sell yesterday but for anyone that read my fortune and tried to pick up some leftovers, today was a nice and profitable one. However, dont hold if you are, this stock has to pull back on profit taking. (ZLC) Zales came down some more today. If the stock goes to $2.99, I’m in. I doubt it will come that low, but I’m patient and will see how Friday and Monday position this stock. I knew a while back this one was overvalued and due for a tank…I think I even emailed a reader on that stock.

Here is the market summary for Thursday:

Looking at Friday:
Economic Indicator:
8:30AM GDP for Q1-revised
8:30AM Corporate Profits for Q1
9:45AM Chicago PMI for May
9:55AM University of Michigan Sentiment for May-revised
10:30AM Weekly Leading Index

News to Follow:
Dell Inc., the world’s second-largest maker of personal computers, reported sales that missed analysts’ estimates after shoppers put off buying new PCs. Cost cuts helped the company top profit projections.

Mortgage delinquencies hit record high in Q1.


Marvell Technology Group Ltd (MRVL) reported lower quarterly earnings on Thursday, matching expectations, but its shares dived 5 percent with investors hoping for a stronger performance as the chip sector recovers.

There is also talk among of a lot of people who are looking to short (KBE). Basically the belief is that financial stocks are over bought and that they are due for a pull back. Now, if bank stocks do start to tumble, I would not get in on a short position, but I would ride the (SKF) which is the inverse reaction of the movement of the banking stocks. Keep your eye out for this stock.

Gold is now at a 3 month high. So as metals are rising at this consistent pace, a correction should come about soon. If you are in gold, be cautious. I said to buy (AUY) back when it was around half of what it is now. Nice profit right now, just don’t let greed erase gains.

Happy Investing!

Aman, MBA

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