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Two Ways To Play: Citi Tries Fixin' Foreclosures


Strengthen your portfolio in good times and bad.


Citi Tries Fixin' Foreclosures

Following similar moves by JPMorgan Chase (JPM) and Bank of America (BAC), Citigroup (C) has announced plans to halt foreclosures over the coming months as it modifies as much as $20 billion in mortgages. The modifications will include lowering interest rates, extending the terms of loans and, as a last resort, cutting the total amount of the debt.

The program is expected to reach 500,000 customers, with roughly 130,000 likely to see a reduced monthly payment. The nationwide initiative will focus primarily on those states that have been hardest hit by rising unemployment and sharply declining home prices. For context on the banking sector, see Professor Andrew Jeffery's Fed Lends $1.1 Trillion, Won't Say To Whom.

From the Bull Pen: Bulls can look elsewhere. A stock with potential significant upside might be Verizon (VZ). Sell stops can be placed below $29.

From the Bear Cave: General Electric's (GE) status as a financial in drag has been known for some time. But those attempting the downside can consider setting buy stops above $19.

Quick Check Around the World

Asian trading closed with the Hang Seng -4.77%, Nikkei -3.00%, Sensex -6.61%, Taiwan -2.15% and Shanghai -1.66%.

Glancing towards Europe, we see the CAC -2.99%, DAX -2.84%, FTSE -2.59%

As of 8:20 a.m. EST, S&P Futures are trading -15 to 905, and Nasdaq futures are -20 to 1237.

A Look At Commodities

Crude oil
is trading -2.67 to 59.72. Gold is -9.500 to 737.00. Silver is -0.380 to 9.840 and copper is -5.350 to 169.30.

The dollar index is +0.062 to 85.974.

On the Radar


10:00 IBD/TIPP Economic Optimism

Click here for the full trading radar.

Good luck today!

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No positions in stocks mentioned.

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