Trade Ideas: CIT

The day before Thanksgiving was never going to throw up a big surprise. The Trade Ideas scan was similarly listless; 8 picks covered a time span of 6 minutes - not bad considering. In terms of frequency, only one stock made the cut at 20 appearances or more: CIT Group (CIT).

CIT Group is pushing out of a small bull flag/handle; part of a 5-month base. I have dervied a projected target based on the depth of this base. The point-n-figure chart target of $40.00 is looking unlikely given the nature of the July reversal. The current pattern has a strong resemblance to the reversal made in the first part of 2005; particularly at the time of the absolute bottom. Watch for an upcoming "Golden Cross" between the 50-day and 200-day MAs. The stock pays a 1.5% yield.

CIT Group, Inc. operates as a global commercial and consumer finance company. The company provides financing solutions, leasing products, and advisory services to clients across approximately 30 industries worldwide. It holds positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and student and asset-based lending. As of May 31, 2006, the company had approximately $65 billion in assets under management.

This was an interesting (and amusing) piece done on "Wallstrip". Given the dark lighting and Lindsay's big jacket she looks more like a stalker (or flasher!). No wonder no one was forthcoming on the stock tips ;)

If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.

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