Monday didn’t turn out to be that bad. Dow appeared to head deep south with over a triple digit loss by mid-day, but managed to turned it self around, and finally ended up almost flat. Nasdaq and S&P managed to eke out a barely positive finish. The trading volume was extremely low.
For the day, Dow lost 26 points or 0.3% to close at 8058. The S&P 500 rose 2.17 points or 0.3% to 859, and the Nasdaq barely unchanged at 1,653.
The IEA cut world oil demand forecast by 1 million barrels a day because of tough economic condition around the world. It also said that the consumption might drop further if the world economy doesn’t recover soon. On the heel of this news, crude fell $1.25 to settle at $50.05 a barrel. Gold had a nice up day in a while and rose $12.50 to $895.80 an ounce.
TaurusTrader portfolio had a decent day. CMED and AMR came very close to hitting the target. None were stopped out. All 12 positions have positive unrealized gains heading in to tomorrow’s open.
Tomorrow should be a very interesting day. Surprisingly, GS released earnings a day earlier after the markets closed on Monday. GS reported a quarterly profit of $1.67 billion, which was way better than the street expected. GS also expressed its desire to raise $5 billion in a special offering to pay off the TARP money. The good news from GS follows another positive surprise by WFC last week.
Traders are also awaiting results this week from key companies in other industries, including INTC, JNJ, and GE. Reports on inflation, housing and manufacturing are also due.
With a positive surprise from GS, the financials should see considerable activity at trading tomorrow. I also would watch basic materials, minerals, and transportation sectors for positive price action.
I would be looking to add the following positions to TaurusTrader portfolio:
GNK – Buy above $15.67, stop at $13.70, target at $18.50
FAS – Buy above $9.80, stop at $7.25. target at $11.50
Apart from these, I’ll also have the insurers, MET and AFL on my radar. Other stocks of interest are – HP, IPI, BWLD, and PNRA.
That’s it for now …. have a great day trading!