Stocks traded nicely higher today as earnings season is kicking into high gear. Citigroup, a stock that I own came out with great earnings today and again showed how the U.S. banking system is growing again. The stock was up by almost 2% on the day to $34/share, still way below my price target of $43/share. There were also some very good earnings releases out of the housing sector, as well as out of Home Depot which pointed to a bottoming out and slightly rebounding housing market.
The two worst take aways from today's market, were the 4% selloff in Apple and the 3% selloff in Google...as I wrote here last week regarding someone wondering what I thought about buying Apple (the stock), I think it's been a heck of a ride and congratulations to anyone who has owned it, but I think the move up in price might be a tad extended at this point. While I'm sure the selloff in the most beloved technology stock in the world will be mentioned in the news tonight, the real question becomes whether or not the pullback in price represents a good opportunity for people to get invested in the stock..I wouldn't go there with my money personally as I don't see a whole lot of catalyst going forward to keep the stock moving up.
Generally speaking, it was a good start to the trading week and I'm going to be addressing the notion of the old stock market adage, "sell in May and go away"...which basically means that most investors should sell out of the market during the summer months and get back more invested come the fall; the truth to the adage is this, sometimes it works and other times it doesn't (that's about what it is with everything though!). I'll be writing about what I think and foresee about the summer investing months and I'll outline how I'm going to invest accordingly.
In looking at a couple of stocks that I currently own, Etrade (which is one of my largest investment positions) has sold off down to $9.91/share even as their trading/investment businesses are doing great. I will be buying more stock below $10/share as I see far too much upside in the share price over the coming quarters.
Another one of my larger investments, Yahoo, continues to trade below $15/share and I believe that at $14.78/share the stock is one heck of a great buy and I am going to be adding to my position as such.
Just to mention again, I believe that both Etrade and Yahoo will be acquired by larger companies over the course of the year.
