Financials: This is what a Bottom starts to look like

The consolidation and bulk investing in the sector has begun and is now accelerating.

Here's the list of Financials worth further evaluation:
- Citigroup (C) getting $7.5 billion from Abu Dhabi and most likely $14 billion more from Singapore's GIC - the Government of Singapore Investment Corp or Prince Alwaheed or China. Point is someone wants to give them billions.

- Bank of America (BAC) buying Countrywide (CFC)

- JP Morgan (JPM) possibly buying Washington Mutual (WM)

- Bears Sterns (BSC) and CITIC exchanged stakes

- Merrill Lynch (MER) received $5 billion from Singapore's Temasek and may be getting more soon.

- News from Berkshire Hathaway (BRK) is that they may partner or buy a bond insurer like MBIA (MBI) or Ambac (ABK)

So does this means the financials index (XLF)has nowhere to go but up? No, there may be a little more downside from here. It does mean that there will not be much more significant downside though. Currently trading at a 5 year low the sector as a whole is vastly oversold.

Disclosure:Long Citi, None in others

Todd Sullivan writes the ValuePlays Newsletter on sale at WallStNewsletters.com for only $45 a year, it's published every month and its also available as part of the Full Monte - 7 Newsletters for only $130 a year.  The FULL MONTE newsletters are done by The Stockmasters, (Todd Sullivan) ValuePlays, the Peridot Capitalist (Chad Brand), Timothy Sykes, Jelly Roll Capital Stock Reports (James Cullen), and Steve Reeves.

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