Financial Sector Beware LEH and CIT
Every day, we run a series of screens, large and midcap, buy & sell, breakout and breakdown.

 

Today, our Large Cap Sell Screen identified Lehman Brothers (LEH) as a Sell. It has a current master score of 33 (out of 100) and has an abysmal technical score of 17.  It went to a sell signal back in March around $52, and two weeks later, traded as low as $20.25. It recovered somewhat, flipping to neutral around $44.  

 

Its now back on a sell signal, with a $20 price target. .

 

The MidCap Sell Screen found a smaller financial: CIT Group (CIT). It also went on a Sell. Same set up as Lehman Brothers: First sell signal was in March about $16, fell to $6.45 a few weeks later, back to a neutral a month later.   Now, CIT is back on a Sell/Short rating, with a target about 30% lower.

  

Traders who short stocks should always work with stop losses. The financial sector, with outside investors, have been very volatile, with squeezes occurring regularly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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