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Stocks meander as session progresses

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Stocks are little changed since 01:00 PM EST as stocks continue to trade off their best levels found earlier this morning. Dow component Citigroup (NYSE:C) is making a nice move today above recent consolidation despite the bank being one of Enron's leading creditors.

Today's bullish move in shares of C finds the financial edging higher with the S&P Bank Index (BIX.X) up 0.5%, The KBW Bank Sector Index (BKX.X) +0.78% and the Securities Broker/Dealer Index (XBD.X) trading higher by 1%.

Citigroup Chart - Daily Interval

Shares of Citigroup (NYSE:C) traded above the $51.43 level today and just above our 61.8% retracement but uncertainty about potential credit exposure to Enron (NYSE:ENE) and downward trend have me a little skeptical toward a bullish trader right here. I do like the nice volume spike recently from $48.90-$50.15, but the recent move higher on extremely light volume has me thinking bulls may get another shot at this one in the $47-$49 range.

This week we've seen a tendency for stock to move higher into the close after the bond market's close at 01:00, but volume on the broader market remains very light.

I've been looking "high and low" today for some type of chart that compels me to do something, but haven't really found it.

About the only thing I saw that I did like was a short/put trade once again on shares of Broadcom (NASDAQ:BRCM) near $42.95, which is right near a level that we had identified the bearish triangle on the stock December 13th. The stock traded right down to our descending channel line of $37 and has recently rallied right back up to its "bearish triangle" sell signal. Would be looking short again, stop $45, target $37-$36 this time.

Jeff Bailey
Senior Market Technician
Option Investor

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