A look back at last week: Last week the market as a whole was sold off and lost about 1.7%. For my picks I was bullish on DE and POT while bearish on LCC. DE beat the street and stayed flat due to a rise in the price of corn. US supply of corn came out this week and my prediction for a tight supply was right, corn prices shot up on flooding concerns. POT faired similarly and was flat on the week. I strongly suggest getting in on these two stocks. LCC was down 8.9% on the week, considerably more than the market due to low traffic and high fuel costs. I'd say I went 3 for 3 last week on my picks.
June 13th-17th
Last week was the 6th consecutive week the major indexes lost on the week and I believe market is oversold. However I believe because of the news coming this week the market will go depending on how the news is. There is a lot of big news this week. Retail sales and PPI (inflation) numbers come out on Tuesday that, if better than expected could cause the market to rally through the week. Wednesday more inflation (CPI) and industrial productions numbers come out. I expect industrial production to be worse than expected because of a strong dollar, causing US goods to be more expensive and imports to be cheaper. I expect inflation to higher than expectations, oil has remained steady but agricultural products will be more expensive than before as I explained last week. Thursday the last big news comes out for housing starts, I expect 0 houses to be started as the housing market is still in very bad shape. This news will not move the market unless it is better than expected. Look for Monday, Wednesday and Friday to be winning days for the US market.
Last week I talked about corn and how its getting to be too late to plant it, this week let's quickly talk beans. Farmers window to put their cash crop, corn in the ground is closing fast. Farmers are not going to leave the fields bare so less profitable soybeans will be planted across the United States. Bean supply will exceed demand this year look for falling prices of soybeans.
Pandora Internet Radio releases its IPO on Monday. Getting in on an IPO requires you to know somebody but you can get in on the hype of it. Most people who get in sell on the open and make a few dollars doings so. Look for Pandora (P) to sharply rise on the open, start to come back down, and go back up again but I wouldn't ride this stock for more than a day or two.
Railroads are a great stock to get if you are not in one yet. Warren Buffet likes them so much he bought my favorite railroad, Burlington Northern and bundled it into Berkshire. My pick in the railroads is CSX (CSX 73.48). It has been relatively unaffected by natural disasters this year because it is located mostly on the Atlantic coast. I would stay away from Canadian National Railways (CNI 75.13) because it has been crippled by Mother nature and bad luck. They are diverting much of their traffic around their main lines, particularly in the Dakotas due to flooding and next the had a derailment in Northern Minnesota on an already congested line. I still think railroads are strong but CSX is the leader.
This week will be exciting on Wall Street and could go either way. Be sure to pay attention to those economic reports coming out and make your decisions off them. Also this week I will talk about OPEC and the talks or lack of them between members and what that means for the price of oil. Expect that post on Thursday.
One last pick: Buy blink-182 tickets because they are the greatest band ever and tour with My Chemical Romance. These tickets will be a hot commodity
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