Daily Stock Pick of the Day - Thurs, Sep 2, 2010

A big day of gains in the market today.  The Dow rose 2.5% where Bank of America and Caterpillar led the charge higher.  The S&P 500 gained nearly 31 points or about 3% and the Nasdaq closed up 3% or 62 points.  The VIX fell more than 8% and closed below 24.  Apple (AAPL) was a huge winner today on the news that they will be releasing several new Ipod models and making improvements to Apple TV which streams movies and tv shows over the internet.  They closed the day $250.33, up 7 points or approx. 3%. 

A good day for sure, but one day does not a trend make.  The headwinds that existed yesterday and throughout August still exist and the negative trends we're seeing in the economy are persistent.  Tomorrow is "retail report" Thursday where several retailers are expected to show an increase in same-store sales month over month.  Will it be a Back-to-School celebration or Back-to-School bust?  And remember, we have the all important jobs report coming out on Friday.  I'm not optimistic that we're going to see a jobs number with a net positive gain.  In fact, I'll bet it's net loss number, although perhaps the loss will be smaller than the prior month.  Any way you slice it, companies are not hiring in a manner we'd like to see that foretells a recovery.

However, since I'm always looking for good stocks, here's my pick for today:  Ford (F).  If it can maintain some momentum and trade at $12 or above for 7-10 trading days, I think it has a good chance to rise to $15 and then I'd sell.  It looks like much of the selling pressure has eased in recent days and is rising from the bottom of an oversold condition. 

Volatility still rules the day.  Be cautious and happy trading!

Obligatory disclaimer: This blog is for information only. Past results do not guarantee future performance. All financial decisions involve risk and there are no guarantees. The suggestions above are for informational purposes only and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.