Two Ways To Play: Citi Needs To Regroup
Strengthen your portfolio in good times and bad.
Trouble Looms For Citigroup
According to the New York Times, the worst may be yet to come for Citigroup (C). After a full year of losses, a nearly 70% plunge in its stock price and a government rescue of $25 billion, analysts are still skeptical the company can find its footing. At issue is the credibility of its management and board. Insiders say the company is racked by office politics, and some are skeptical that Vikram Pandit, finishing up his first year as CEO, can regain his grip.
The performance of Citi's stock price yesterday was of particular concern. In one of the largest point gains for the major indexes in history, its stock failed to rally, closing down 2% by the end of regular trading.
From the Bull Pen: Those testing the upside in Citigroup can set a tight sell stop near $9.50. Another bank to consider is Wells Fargo (WFC) on this morning's pullback. A sell stop can be set below $28.
From the Bear Cave: In the financial sector, bears can consider Deutsche Bank (DB) on a rally back to $40 resistance.
Quick Check Around the World
Asian trading closed with the Hang Seng 2.43%, Nikkei 2.72%, Sensex -1.58%, Taiwan 0.34% and Shanghai 3.05%.
Glancing towards Europe, we see the CAC 2.69%, DAX 3.95%, FTSE 3.94%
As of 8:00 a.m. EST, S&P Futures are trading -15 to 892, and Nasdaq futures are -13 to 1220.
A Look At Commodities
Crude oil is trading +0.21 to 58.45. Gold is +30.20 to 735.20. Silver is +0.555 to 9.355 and copper is -3.450 to 161.50.
The dollar index is -0.211 to 86.743.
On the Radar
08:30 Import Price Index
08:30 Advance Retail Sales
08:30 Retail Sales Less Auto
10:00 U. of Michigan Confidence
10:00 Business Inventories
Happy Friday! Good luck!
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