It was announced today that the results of the bank stress test will be released on May 7th. Which might be a good thing for investors and traders who are looking at some more gains this week. The stock markets have been relatively flat today on light volume.
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I’ve been holding on to some of the positions waiting for some sort of sign of a pull back to come. With the news of the stress test coming out on Monday, I was planning to sell out of the remaining positions today, but with the news being pushed back three days, I just might wait till Tuesday.
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One company I’m looking to jump out of is Kinder Morgan Energy Partners (NYSE:KMP). The stock has jumped over 15% the beginning of March. Why I’m waiting to exit the stock is because of the 10% yield I will receive on the dividend. The ex-date is today at the close of the trading day. I feel that it’s been stuck at a resistance level and has stalled. I’m up nicely and will get back in when the markets pull back, taking KMP’s price down along with it.
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I feel that the stress test are going to be negative for the nineteen banks, why else would they delay the results. Of course we should have known they would be for the simple fact of the guidelines put in place by the government. The banks won’t be allowed to count the preferred assets to the bottom line. Without those assets counted, the government will claim that the banks are not well capitalized. If they are considered not well capitalized, the government will not allow them to give back the bailout money, letting the government have some say in what they banks policies and procedures are.
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Keep in mind that the markets have moved up well over 20% in the last two months. We are not out of the woods yet when it comes to the economy. So be prepared for a healthy pull back in the indicies.
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Have a great weekend and happy trading.
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It’s only a couple of days before President Bush leaves office and Barack Obama takes over. Typically the stock market have improve to some extent when the new President takes charge, but what are we to expect when it’s Obama’s turn? If you follow this blog on a regular basis, you’d know that doing some stock market research will help you prepare for what’s to come in the next month.
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Obama has been working on his stimulus plan for when he takes office. He’s spoken about the infrastructure needs to stimulate the economy. When a politician talks about infrastructure, he basically is referring to roads, public transportation and things of that nature. It seems that Obama’s plan is more in line to boost the green energy sector to help remove our dependency of foreign oil and to reduse green house gases.
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If that’s the case, then we need to focus on some stocks that could benefit from that type of stimulus plan. From what I can tell he hasn’t really spoken to T.Boone Pickins for some advice on what this country needs to do to remove that dependency. I’m incline to think that Natural gas may not be something the Obama is looking towards to help that along. I will say though that Natural gas has made some nice gains in the last week or two. I have been invested in natural gas for sometime and have prospered from those gains and taken some profits in it, but I do hold some interest in a company that should continue to grow.
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What about solar, wind and nuclear energy? I think in each of these areas that there are some stocks that will benefit from the stimulus plan that will most likely pass once Obama is in office. My advice is to look at the leaders of each of those areas and do your research to see if they can make some gains from the plan.
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The only stock that I will recommend at this time would be a company that I’ve spoken about before on this blog. The company has basically bottomed in the last month or so and I have jumped in and out of it a few times with some good gains.
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The company is Quanta Services Inc. This company will prosper from the plan in couple of different ways. It’s a infrastructure construction company that focuses on alternative energy. It has a strong balance sheet as well as some good guidance for the coming quarter and fiscal year. It’s presence in the alternative energy sector is also strong.
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As always, I will tell you to do your own research to see if this trade is right for you. Later this week I’ll have another suggestion for you portfolio.
Happy trading.
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Last Monday I stated that the markets would finish up for the week. Well the DOW was at 8516 on Friday December 26th at the close. Wouldn’t you know it that the DOW finished this week’s short trading session at 9034.
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What a day Friday was to start of the year. It open up, dropped down and went up from there all day long. It looked like everyone couldn’t wait to start a new trading year. Who knows where the coming week is going to take us. I’m hoping that it will finish in the 10,000 range, but of course that’s asking too much, or is it?
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We have about two weeks before Barack Hussein Obama takes office and there’s a lot of uncertainty about what his administration will do in the few few days of office. He’s been working on a stimulus package while vacationing down in Hawaii. It’s reported to be in the $750 Billion range. Quite a bit of focus on the infrastructure of the country, but we’ll just have to wait and see.
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As for what I have in mind for the coming week. I’m going to take profits where I can and wait for some new buying opportunities to get back in on the stocks I took profits in already. In the Month of December, I gained 25% and I don’t want to lose any of it to the uncertainty in the markets. Good luck to all that are out there and happy trading.
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What a year this has been for the stock markets. When this year started I knew the indicies would drop quite a bit, but no where to the levels that they are at now. After the years we had in 2005-2007, there was no way that the DOW or any other market would have a positive one in 2008.
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I’m looking forward to the next year to start already. I figure that there are many who are waiting for it as well. Holding off on the sidelines and just wait out the rest of this year. I’m very optimistic about 2009 and expect a very profitable one at that.
We will need to stay away from certain sectors for the beginning part of the year and in some cases, stay away from others all year long. Which ones they are, I’m not really sure, but I do know that the real estate market is one that I will be involved in sometime in the year.
The markets have held up well in the last two weeks (even without the Santa rally) and I expect this week to be higher than where it closed on Friday. So hang on to your hats and enjoy the ride.
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The Week Ahead
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It’s that time of year again where everyone is to have happy thoughts and share time together with their family and loved ones. Christmas is suppose to be a happy time, but with the way the economy is, it hard to stay positive and enjoy the season.
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I’m basically a positive and generally a happy person. I would like my readers to try to be the same way while these times are upon us. Yes, we lost money this year or at best didn’t make as much as usual, but most of us still have our health and all the read this are still alive. So try to think of happy thoughts and remain positive.
The stock market will turn around in 2009 and we will get past this financial crisis as well as all the other things that has happen.
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I want to wish all of my readers a merry Christmas and a happy holiday season. I thank you for being a part of this blog for the last five months as I prepare to build on what foundation I’ve laid during that time. Without you this blog wouldn’t have come as far as it did. With your continued support this site will only get better.
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Thank you once again and have a save and happy holiday.
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The Week Ahead
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