filed in My Investments on May.12, 2009
Tuesday was another potential downward day on the markets which was hurt by some of the indicators. However, towards the end, there was a pull upwards for a flat ending. Blue chips gained and the Nasdaq declined in a mixed Tuesday session on Wall Street as investors showed caution after the recent rally and amid ongoing worries about banks and autos.
Greenspan came out late Tuesday saying that there is a visible bottom forming in the housing markets and also the financial markets are starting to improve further. This can be attributed to the late rally on the markets. Its seems like everyone is calling for a correction on the markets, a big one for that matter, but personally speaking, it looks like a few down days will lie ahead before the really continues. Remember, everyone needs to take profits at some point. Use these chances to get in low and sell on the next rumors.
Here is the Tuesday market summary:
Looking at Wednesday:
7:00AM Weekly Mortgage Applications
8:30AM Retail Sales for April.
8:30AM Import Prices for April.
9:45AM NFIB Small-Business Survey for April.
10:00AM Business Inventories for March.
10:30AM Crude Inventories.
Bank of America (BAC) reportedly made $7.3 billion from the sale of 13.5 million shares of China Construction Bank to a group of buyers, according to published reports. This and a pending dilution of its own shares did drag the stock lower. Dont expect it fall back to previous lowers. Remember, the stock did fight from $3-7 a few times before moving up the next level. This is the same situation right now, the stock could go down another 10% but don’t expect a $5 (BAC) unless some grim news comes out again to cause panic.
Automakers were weaker, with General Motors (GM) down on growing speculation that the company is likely to file for bankruptcy protection. The shares fell intraday to $1.09, the lowest level since 1933 Tuesday, one day after a group of the company’s executives said they had sold stock and direct holdings in the automakers. Shares ended at $1.15, down 20%. Not a fan of (GM).
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