The market is having a nice rally this morning. I should you warn you that the real test will come in the final 30 minutes of the trading day (3:30 to 4). If we see continued buying going into the close, then we’ll know there’s more conviction to this market. As I’ve been saying, what I really want to see is a day with a weak opening followed by a strong and continued intra-day reversal. That will be a key sign that the bulls are starting to gain control of this market.
The market seems happy that Citigroup’s CEO said that the company has earned a profit for the first two months of the year. That’s certainly good news, but with the stock currently worth less than some of its ATM fees, I’m still not a Citi fan.
There is one very low-priced stock that I like and that’s Boots and Coots International Well Control (WEL). They’re the company you call if your oil well has caught on fire. The company just reported fourth-quarter earnings of seven cents a share which was a penny more than what Wall Street was expecting. Boots and Coots just wrapped up a record 2008. Earnings-per-share jumped from 11 cents in 2007 to 28 cents last year. The stock is an excellent buy.