Two Ways To Play: Treasury's Sudden Halt to Sell Citi Stock
Strengthen your portfolio in good times and bad.
Shares of Citigroup (C) are under pressure this morning after the US Treasury abruptly canceled plans to cut its 34% stake in the bank.
According to the Wall Street Journal, the Treasury suddenly reversed course after investors demanded a price so low that the government would have lost money in the deal.
The announcement comes just two days after the Treasury said it was going to sell about $5 billion of stock. Instead, a Treasury official said it will now divest its shares over the next six to 12 months.
Citigroup is down over 8% in the premarket trading near $3.16 a share.
From the Bull Pen: The news is an embarrassing gaffe by the Treasury but it doesn't have implications on the overall financial sector. Consider a play in Bank of America (BAC). A short-term sell stop can be set below $15.
From the Bear Cave: Bears looking for a downside play might find one in NYSE Euronext (NYX). The stock is sitting below its 200-DMA (26); a buy stop can be set above that level.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check Around the World
Asian trading closed with the Nikkei -0.13%, India -0.11%, Hang Seng -1.22%, Shanghai -2.34%, and Taiwan (Closed).
Across the pond, we see the FTSE -0.94%, CAC -0.60%, DAX -0.65%
As of 8:30 AM EST, S&P Futures are trading -8.50 to 1097.75. Nasdaq futures are -11.00 to 1789.00
A Look at Commodities
Over in commodities, crude oil is -0.70 to 71.96 while gold is -14.50 to 1121.70 this morning. Silver is -25.30 to 17.4 and copper -4.900 to 315.65.
The dollar Index is +0.6650 to 78.0000.
On the Radar
08:30 Initial Claims
08:30 Continuing Claims
10:00 Leading Indicators 0.7% cons.
10:00 Philadelphia Fed 16.5 cons.
Click here for the full trading radar.
Good luck today!
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