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Minyanville's Before The Bell: Citigroup Surprise, The Trillion Dollar Company!

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Citi CEO quits and the company announces $55 bln in subprime exposure. Petrochina's market cap reaches $1 trln dollars! Futures are lower before the opening.

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Morning Perspective: Citigroup Surprise

Citigroup (C) CEO Chuck Prince finally succumbed to pressure and resigned over the weekend, making him the second major Wall Street CEO to resign in less than a week. Citigroup, the largest U.S. bank by assets, announced Former Treasury Secretary Robert Rubin will become chairman, and Win Bischoff will be interim CEO. The bank also stated it will maintain its dividend while announcing a total subprime exposure of $55 bln with a potential $5-7 bln in further write-downs. Read Toddo's The Haunted House.

From the Bull Pen: Financial bulls may look to bellwether stock Goldman Sachs (GS) for a snapback trade with stops below GS $210, which is both the 50- and 200-day moving average.

From the Bear Cave: Those looking for a financial short may look to Morgan Stanley (MS), which broke a triple bottom at $60 (using that level as defined risk).


A PetroChina Surge


Shares of PetroChina (PTR) debuted on the Shanghai Stock Exchange and almost tripled in value. Bloomberg reports PetroChina shares rose from 16.7 yuan to 43.96 yuan giving the company a market value of $1 trln, surpassing Exxon Mobil (XOM). Toddo notes the valuation makes the company larger than the entire Russian stock market! Read Professor Jeffrey Cooper's articles Like A Bull In A China Market and Just Another Brick In The Wall Of Worry.

From the Bull Pen: Chinese bulls consider the iShares FTSE Xinhua China 25 ETF (FXI). Consider 199, a break of near-term support, as a stop.

From the Bear Cave: Those who believe that energy may have gotten ahead of itself can look at Exxon Mobil as a short with a stop above $90, a triple bottom break.

Click on Minyanville's Stocks to Watch for more company-specific ideas.


Quick Check Around the World

Asian trading closed with the Hang Seng -5.01%, Nikkei -1.50%, Sensex -1.93%, Shanghai -2.48% and Taiwan +0.38%.

A glance towards Europe finds the CAC -0.79%, DAX -0.58%, FTSE -1.27%, ATX -1.34%, Swiss Mkt. -0.40% and Stockholm -0.29%.

As of 8:00 AM EST, S&P futures are trading -13.80 points and Nasdaq futures are lower by -16.50 points.


A Look At Commodities


Commodities are lower this morning with crude down -1.38 to 94.56. Gold is down -2.7 to 805.8. Silver is up +0.021 to 14.62 and copper is lower by -1.550 to 330.95.


On the Radar


Here's a preview of events for today:


Economics


10:00 ISM Services: 54.0 consensus.

Before: AIMC, BKC, CAPA, CSAR, CAH, ETR, GVHR, IGLD, KEI, KBALB, LMS, MVL, MCY, MFLX, NUS, NS, SYY, TTI, WCG

After: ATVI, ASCA, APC, BRS, CRL, CCRT, DNB, XCO, FST, HLEX, HLS, KND, NTY, QGEN, QMAR, RADN, RSCR, WINS, SIE, SGY, JAVA, SYKE, TNS, UDR, WRNC, WMS

Click here for Minyanville's full Trading Radar.

Happy Monday, Minyans! Good luck!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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