Sunday, September 5, 2010

Daily Stock Pick of the Day - Tues, Sept 7, 2010

Stocks closed out the week with a gain, which was great, but I'm not buying the farm just yet.  Volume was light going into the holiday weekend and that gives me some reason to be cautious.  We got a jobs report that many felt was better than expected so people feel that the economy could be turning the corner. 

The banks were the big winners for the week, gaining almost 6%.  Goldman Sachs (GS) picked up 7pts or 5.3% to close at $147.29.  JP Morgan (JPM) rose 1pt or 2.6% and Wells Fargo (WFC) rose 2.9%. 

Tech stocks picked up steam, too.  Mighty Google (GOOG) rose 7pt to close at $470.30 or 1.5% after it was revealed they are planning to get into the music business and compete with Apple -- whoa!  Apple (AAPL) closed the week up 6pts or 2.6% at $258. 77. 

Gold and treasuries dipped a little bit.  Has anyone been following silver?  The word is that it's hitting some highs. 

So, speaking of gold, I'm really liking some of the gold mining stocks.  In the week before last, they didn't look so great.  This week, money seems to be flowing in to some of them.  One of the stocks I like is Newmont Mining (NEM).  I want to buy this one on a pullback to the $58-$59 range, which is likely to occur looking at the MACD and the Stochastics.  I think the 50-day is solid bounce point and could run back to the $62- $63 range.

Have a good weekend.  Stay 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.

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