Citigroup – Insiders buying in August 2009

Citigroup Chairman of the Board, CEO of Citibank N.A & 3 Directors were the insiders who bought Citigroup shares last month. The Chairman & the CEO bought 1 million shares each at $3.21 and $3.41 respectively. It is a good sign when insiders purchase their own company’s shares because they know the company’s business much better than any investors. This is also a good indication for investors to take long position of this stock.

Stock’s Background

  • 3 years historical high = $55.08
  • Current Price = $4.68

Note: The stock price is unlikely to go back to $55.08 because the fundamental of the company has changed. Citigroup is still losing money this year.

I am waiting for a right time and right price to buy this counter for long term investment.
My plan:

  1. Wait and see whether the stock price can hold above $4.26 and the 20D and 50D MA support trend in Sept. If the stock price continues to stay up after big Dow Jones & S&P500’s correction, I will consider to buy at the price near $4.26 in Oct.
  2. If the price breaks the $4.26 support level,  my entry target is around $3.65. I need to make sure all the Technical Indicators do not show bearish convergence and the stock price is not on the down trend.

General Electric – Testing the strong resistance for the 3rd time!

General Electric (GE) had a gap up yesterday closed at $14.52 (+4.69%) after JPMorgan upgraded GE to Overweight from Neutral and raised the target price from $12 to $17. I will be keeping a close watch on this share over the next few weeks to see whether it can break the resistance of $14.57. Next immediate resistance is $16.44. I am planning to keep GE as long term value investment.

Stock’s background

  • 3 years’ historical high = $42.12
  • Current Price = $14.52 (35% of the historical high)

China Zaino – another S-chip stock is swinging in the channel!

Spotted another S-chip stock China Zaino besides Synear and China Hongxing. The patterns for these three stocks are very similar (had breakout and swing inside the up trend channel). China Zaino’s fundamental is pretty solid and can be kept as value investment. My strategy for this stock is to buy some for long term investment and some for short term momentum investment. Target entry point is $0.28 and exit point is $0.335 (about 20% profit target).  Next strong support is $0.27 (61.8% Finonacci Retracement level).