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.


Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more