GOIH Capital Markets sees a strong opening in the market today. Our models indicating the Dow opening higher as well as the NASDAQ on slow volume pending the Fed's meeting on Tues.
Next week the investment banks report earnings for the second quarter. Trading has been volatile in the banks pending the announcement of earnings. Most of the large brokers have exposure to the credit market and earnings will depend on the management of the risk involved in the assets of that market.
McDonald's
In an earlier post here our models predicted that MCD, (McDonald's) was attractive. MCD raised its dividend by 50% after the close. A gap up in the opening.
We picked up a position in the after market long for 100,000 @ $51.20 on MCD.
We see the market trading sideways until the FOMC meeting on Tues.
Apple Inc.
Apple is up strong in the premarket with bid of $138.61 after closing at $136.85.
GM is up strong on news of the UAW contract negotiations......we see GM going higher if the contracts are positive. However, the gap up is based on costs saving rather than increased sales.
Crude oil traded over $80.00 per barrel in intra day trading.....strong oil should lower GM's sales relative to any gains made in the UAW contract.
Countrywide (CFC)
We exited our short CFC position at $16.45 for 300,000 shares for a profit of $465,000.
