Markets Finish April Strong

April 2009 will go down as being a very good month for investors. The S&P 500 futures contract rose a strong 9.5% coming off the heels of an oversold bounce. Market movement looks good and bullish.

The Markets

The S&P 500 futures contract (ESM9) moved higher than I expected for the month of April and closed at 865. As I mentioned at the top of April, I felt that it would be rangebound between 780 and 860 throughout the month and for a good portion the contract was. I estimated later that it would finish around 840.

Where to next? I estimate the S&P 500 ES contract to wiggle between 845 and 960 on continuance of an uptrend for May 2009.

Stocks To Watch

Shares of Sequenom (SQNM) got crushed 75% today on word that the Down syndrom drug they were developing was "employee mishandled". According to the company which is developing the SEQureDx Down syndrome test, none of the tests can be relied upon.

MGM Grand (MGM) soared 35% today on news that the City Center Las Vegas project will continue to be built after Dubai World would drop its lawsuit against Kirk Kerkorian's company. Lenders also agreed to add an additional $1.8 billion to finish up the project.

Other News

Chrysler goes belly up today and files for Chapter 11 bankruptcy.

Ken Lewis is now a former chairman of Bank of America (BAC). The company said he will retain his seat as president and CEO. But don't hold your breath. I would look at BAC to be a buy in the mid $6's but only a tradeable stock.

Abercrombie and Fitch (ANF) announced that they are laying off 170 employees at their Ohio headquarters (roughly 9%). Note that these are not retail positions but corporate positions so this should come as a notice to shareholders. Earlier in the year they laid off some 50 employees. I would look at ANF to be a buy on any dip into the low $20's as the stock is moving sideways.

About Kerry Kobashi

Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.