Michael Michaud's  Instablog

The Market Ahead This Week

China stocks are down more this Monday to a 3 month low. Japan Democrats take power after the elections. GM is forming China Venture with the FAW. AIG is looking at its options regarding ILFC. Get ready for increased activity in the markets as traders come back to work next week after the summer and Labor Day holidays. This Friday is the big August employment report. Other important reports this week are the ISM manufacturing and non-manufacturing surveys, the last Fed meeting minutes, monthly auto sales, and the Chicago Purchasing Managers reports.

My Stock Pick This Week

Is a sell-short on a US real estate investment management company. I don’t see a bottom in USA real estate prices yet, and I don’t see the same for companies involved in USA real estate. If employment continues higher, which I think it will, then GDP is likely heading lower, and real estate prices and companies involved in real estate are likely heading lower too. In my opinion the worst not over for real estate and the financial markets. The worst is yet to come.

Sell Short Apartment Investment and Management – Ticker AIV

Sell Entry: 13.22 to 12.34

Stop-Loss: 14.63

Take Profit Areas: 11.96 to 11.20, 11.10 to 9.58, 8.12 to 7.31, 5.85 to 5.09

Apartment Investment and Management Company Profile

Apartment Investment and Management Company (AIMCO) is a real estate investment manager. The firm engages in the acquisition, ownership, management, and redevelopment of apartment properties. It invests in real estate markets of United States. The firm primarily invests in apartment properties. Apartment Investment and Management was founded on January 10, 1994 and is headquartered in Denver, Colorado.

Click here to review and trial the Trading Software we used in determining our short position on AIV.

Click the Apartment Investment and Management Stock Chart for a larger view.