Financial Services Weekly Update
Citi: They have been in the news every day. A mgmt shake-up has some people questioning CEO Chuck Prince, this should blow over. They bought a British online bank to get exposure to the credit card market across the pond. I think they will continue to grow at their own pace.
MER: Merrill Lynch increased their retail bank exposure, in buying First Republic Bank (San Fran) yesterday.
AIG: I think of why we are still in this fundamentally, and technically it does not look good. I propose a stop/loss at 66.75/sh. The chart below shows that AIG has fell below its 50-day moving average (red line) and has just broke the 100 day moving average (green). There is signifigant support (lower bound of trend lines, will explain tonight) around 66.55, if it breaks that investor/trader confidence will dip further, causing shares to approach 60. I think we need to be disciplined here and place a stop/loss at 66.75 for our full position.
-Rich
MER: Merrill Lynch increased their retail bank exposure, in buying First Republic Bank (San Fran) yesterday.
AIG: I think of why we are still in this fundamentally, and technically it does not look good. I propose a stop/loss at 66.75/sh. The chart below shows that AIG has fell below its 50-day moving average (red line) and has just broke the 100 day moving average (green). There is signifigant support (lower bound of trend lines, will explain tonight) around 66.55, if it breaks that investor/trader confidence will dip further, causing shares to approach 60. I think we need to be disciplined here and place a stop/loss at 66.75 for our full position.
-Rich
posted by Rich Golaszewski at
1:51 PM
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