Tuesday, November 27, 2007

Weakness Prevailing

We're continuing the trend of morning strength as investors hope for a rally, but it continues to wear out as the day goes on. I'm limiting exposure to the emerging market stuff right now as investors seem to be avoiding that right now. Aside from that, I'm still looking for bargains on stocks that I've followed for awhile.

The financials are really hurting right now. Citigroup (C) secured some financing in a move that seems to have some desperation to it. If you remember they were in the same situation in the early 1990's when another foreign investor, Prince Alwaleed, bailed them out. They are doing the right thing, and although it will take some time, they should get things straightened out. Book value for common shares is 25.48, and that could be a number to target if you're looking to get in for the long term.

Oil prices have scaled back the past couple of days, which is positive, although I'm not sure investors are paying much attention to them right now.

The market is grabbing a lot of headlines with negative news right now, and people are nervous. Thats why I can't give up on being bullish in the near term.

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