Oxen Groups Buy Pick for Today: C
The Oxen Group is hoping this week can be more like last week’s powerful upward movement based on great earnings and economic data. For the financials, especially ones connected to investment banking, we believe more of the same type of earnings could be coming through this week.
Monday, the prospects of this week should help to move the market forward along with the news that CIT Group has been bailed out by private investors. Citigroup (C) should benefit from the bullish propsects for the market. Futures are currently pointing towards a green day, and Asia was propelled into the green, which most analysts pointed to happening because of Asia’s positive thoughts on the market. Financials took a healthy pullback on Friday after moving up most of last week based on positive earnings. Is more of the same possible this week? It should be. Why were Goldman, JPMorganChase, and other financials seeing such positive results…the stock market did phenomenal, relatively, in Q2 of 2009. Any financial company that has a capital investing or investment banking sector should have benefitted. Even GE Capital turned a profit. Estimates are simply way undervalued on the financials.
Why Citigroup? Citigroup had positive earnings last week, and it jumped significantly through Wednesday. On Thursday, the stock had a positive profit taking and followed the market on Friday, but buyer interest is there for the financials. Technically, the stock has a lot more room to move upwards. It is still underneath its upper bollinger band, and it can make a run upwards tomorrow.
Entry: Recommend buying in 10-25 minutes into session.
Exit: We recommend exiting after a 2-4% increase.
Stop Loss: We recommend a 3% stop loss on all buy in prices
Upper Resistance: 3.40
