The market continue to move higher. We got a continuous bull market confirmation today at the close. The Industrial closed at 10,501.05, above previous high of 10,471.58. The Transport also closed higher at 4,165.11. This is a classic Dow Theory upside confirmation.
Stocks In Focus
Exxon (XOM) announced that it will acquire XTO Energy (XTO) in $31 billion dollar stock deal. Shares of Exxon fell 4.3% today. It is trading 12% above the 52 weeks low and 16% below the 52 weeks high. Such dislocation may provide a good opportunity to buy Exxon.
Another name that popped up today was Citigroup (C). After announcing that they will pay back $20 billion of TARP by issuing shares, the stock fell 6.3% and is now trading below $4. I've written about the technical buy level for Citi and BofA in September. Citigroup may be a good trade if and only if it trade down to $2.60. Please note that this is purely speculation.
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