The bulls are back in town. Well, they never left really.
The bears came up swinging Monday after being bullied around last week and were off to a good start. However, today’s round actually went to the bulls as the Dow finished with a slight gain (1 point) and closed at 8,764. It looks like we got the rally after word leaked that some of the Banks could be paying back bailout money this week. The Three Musketeers I follow are JPMorgan (JPM, $35.39, up $0.84), Morgan Stanley (MS, $31.39, up $0.42) and Goldman Sachs (GS, $148.35, down $0.66). Keep an eye on them this week…
Cisco Systems (CSCO, $19.87, unch.) debut on the Dow ended in a non-event as the stock was unchanged. Shares were weak in the morning session but Cisco managed to trade above $20 again. This was right before the closing bell and once again we were denied. I still like the action and will be shocked if Cisco doesn’t CLOSE above $20 on Tuesday.
That didn’t stop Travelers (TRV, $43.92, up $0.47) from adding to its gains. It too was added to the blue chip index. The stock has traded higher 7 out of the last 8 trading sessions. The two companies replaced General Motors (GMGMQ.PK, $1.21, up $0.34) and Citigroup (C, $3.42, down $0.04) in the Dow. DeVry (DV, $46.31, up $0.47) was added to the S&P 500 and it also had a good day.
Apple (AAPL, $143.85, down $0.82) was in the red all day because Wall Street was bracing for the $99 iPhone news which they got. However, Apple also trimmed its Mac prices and the stock almost managed to turn positive. Another hour in the session and it probably would have…
I went into more depth about Apple in our new trading service, WinningWithOptions.com, as well as Palm (PALM, $12.16, down $0.84). I don’t care what Wall Street was expecting and although we have closed the Apple trade, this stock could still run higher. The new price cut by Apple will only increase demand (my guess is by as much as 50%) and lead to more iTune sales and eventually Mac sales. Apple is King.
With that, I should get back to a more normal writing schedule in the next few days. Real quick, for those of you who signed up for our WinningWithOptions.com trading service, the only email I have sent was a trade update from the FREE trades that were posted in the blog and the one I sent out by email on June 2nd. The way this works is like so.
Every Monday I will send an email before the market opens detailing our trade picks and profiling trades that we are considering. Today was the first issue. I will only be doing updates as needed and when there is one, you will get emailed. This information will also be posted in the Members Area, as will all posts made by me.
Most people are confused how this is going to work but I wanted to lay some ground work for you to follow. I know we are late getting the user names and passwords out to some of you and you will get them soon. I just wanted to ensure everybody that they haven’t “missed” anything and I feel stupid that this hasn’t happened. I’m not an IT guy but they tell me they are working on it.
So, if you missed this morning’s trade update, please send me an email and I will personally get that out to you tonight. Those IT guys are going to owe me dinner…
Also, I encourage you to keep reading the blog. Nothing will change, really, as I will still cover a lot of stocks and every now and then an option trade. If I am sending out a new trade I will mention it in the blog.
As far as the user name and password, once you get it, you will have access to the training videos which I will talk about once we get through this big push.
Thank you, everybody, who signed up to support the new trading service. The current trades we have going managed to hold their own today!