Daily Stock Pick of the Day, Tues. Oct 26, 2010

Stocks remained slightly higher Monday even though stocks sold off in the final hours of trading.  Financial companies fell in the wake of the continued fallout of the foreclosure crisis.  Stocks like Bank of America and JP Morgan fell.  BAC closed down 2.5% and JPM fell 1.2%.  The Dow closed up 31points and closed at 11,164.   The S&P 500 closed at 1,185, up 2 points, or .2%. The Nasdaq also advanced closing at 2,490, up .4%.  The CBOE Volatility Index, closed above 19.

The dollar fell almost 1% against a basket of foreign currencies on news that the Group of 20 finance ministers reached an accord overt the weekend to stop using competitive currency devaluations. Analysts see this decision as a reason to believe the dollar will continue to fall.  Gold rose approximately 1%, near $1,336 per ounce.  Oil  gained today, rising to almost $82 a barrel.

While it's good to see the rally continue, continued caution is in order.  We have an onslaught of economic news this week, which will most certainly weigh on the minds of investors.  Earnings reports continue to roll in, the upcoming election and talk of Fed monetary policy can serve as impetus to join the rally, or a belief it's time to step aside if investors feel that not enough economic progress is being made.  The Case-Shiller Home Price Index comes out tomorrow (Tuesday) and the rumor on the street is that it's not looking positive.

I'm looking at Las Vegas Sands (LVS) today.  They operate casinos in Las Vegas and Asia.  Their stock, like others in the gaming sector, hit rock bottom in the spring of 2009.  Today, it's made incredible strides in recouping its value on Wall Street and has plenty of good growth prospects.   LVS hit a high today at 39.88, a number not seen since 2009.  Lately, their performance has been driven by the Asian markets (Singapore, Macau) and they've reported four consecutive quarters of earnings growth.  It might pull back with the general market and an entry in the $37 range would be great. 

As always, stay cautious and happy trading!

Obligatory Disclaimer: This blog is not authored by a financial advisor or a broker/dealer. The author(s) of this blog are not registered investment advisers or registered broker/dealers. The author(s) of this blog do not provide investment or financial advice or make investment recommendations, nor are in the business of transacting trades, nor do they direct accounts or give trading advice tailored to any particular reader’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion or endorsement or offer by the author(s) of any particular security, transaction or investment.


Trading securities involves high risk and the loss of any funds invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The suggestions contained in this blog are for informational purposes only and the author is not liable for any losses incurred as a result of actual investment activity on the part of the reader. This blog is presented for information purposes only and past results do not guarantee future performance.