It appears that the market is gearing up to hit Dow 14,000 part II. It didn't last long when it reached the milestone in July, losing over 1,000 points in the following month. This time, the market has a safety net of Fed rate cuts behind it. But like before, we will see bumps that will try to disrupt things again. Today, that bump is a major profit warning by financial behemoth Citigroup (C). They warned profits could be off 60% because of mortgage and credit issues. I think CEO Chuck Prince will be leaving soon, which will make investors happy, as the stock hasn't done much in the past couple of years.
It is becoming a little difficult to pick individual stocks right now. Valuations aren't totally favorable, as we are near all time highs for the large stocks. There are some opportunities in financial names that have been weaker in the past couple of months. But we have to sort through those too, as some are still to risky.