Monday, September 28, 2009

Weekly Stock Pick

Buy Sell Hold
The Market Week Ahead

First, US Employment Rate Report is Friday. October is almost here. This bear market rally looks like it’s ready to reverse once they take the bull off the stage. S&P500 going to 400 like some say and I think? Europe is releasing bank stress test results. There’s talk that the US Fed might start raising rates sooner than later. I’ve been saying all along, we have not seen the lows for stocks or real estate prices yet. I see them much lower in the years ahead. Then again I could be wrong. The market always shows the way through its fear and greed social mood.

Important Data Reports This Week

Monday: Germany and Japan Consumer Price Index.

Tuesday: UK GDP 2nd Quarter, US Consumer Condidence, and Japan Industrial Production.

Wednesday: Australia Leading Index, Retail Sales and Credit. New Zealand Business Confidence. Australia Wage Agreements. Euro-Zone Retails Sales. Japan Housing Starts. Germany Unemployment. Euro-Zone Consumer Price Index. US ADP Employment. Canada GDP. US Personal Consumption. US GDP. Japan Tankan Survey.

Thursday: Euro-Zone and UK Purchasing Managers Index. Euro-Zone Unemployment Rate. US Personal Income. US Personal Consumption. US Initial Jobless Claims. US Pending Home Sales and Construction. Japan Jobless Rate.

Friday: The mother of all financial reports. US Non-Farm Payrolls Unemployment Rate

My Stock Pick This Week

Is a sell on another US REIT or Real Estate Investment Trust. In the last two months I’ve put sells on two other USA REITS. Last week it was a sell on MGM Mirage Las Vegas where they have the highest foreclosure rate in the nation. What can I say about my position? It’s all been said. The bubble of century has taken down the house that created it all because they forgot to watch over it properly, and now here we are. You could call it the biggest Ponzi Scheme in history so far. I wouldn’t even be a buyer of foreclosures at supposedly current fire sale prices because I think they are headed lower with the unemployment rate heading higher. I say let everything collapse, and start anew with different fiscal policy this time or be dammed to live it again, or let your children deal with it. By letting it collapse, it’ll be the best in the long term. It’s easier and cheaper to build new than it is to rehabilitate an old structure.

Sell Short Lexington Corporate Properties Trust

Sell Entry: 5.99 to 5.32

Stop-Loss: 6 or Higher

Take Profit Areas: 4.65, 3.98 to 3.31, 2.35 to1.90

Lexington Corporate Properties Trust Company Profile

Lexington Corporate Properties Trust operates as a self-managed and self-administered real estate investment trust (REIT). The company acquires, owns, and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. It also provides investment advisory and asset management services to institutional investors in the net lease area. As of June 30, 2005, the company operated 185 properties and managed 2 properties. Lexington Corporate Properties Trust has elected to qualify as a REIT for federal income tax purposes. As a REIT, it would not be taxed on the portion of its income, which is distributed to shareholders, provided it distributes at least 90% of its taxable income. The company was founded in 1991 and is based in New York City.

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