Tuesday, April 20, 2010

Could be a Big Day for America's Stock - Citigroup (C)

TweetThis
Much like the Dallas Cowboys are America's team, Citigroup (C) is America's stock; since we're all part owners.

Today could be a big day... the stock has jumped back to Thursday's highs and sits right below the $5 level.  This level is key because it's a price point where most traditional institutional money (i.e. mutual funds, pension funds) can come in.  (many are not allowed to own stocks below $5)

The government is supposedly going to sell a huge batch of their holdings "sometime soon" but no one cares, the Bernanke Forcefield is up, and this institution is now federally protected, backstopped, and fed 0% Fed money via the IV every day.

So here is a good micro example of a potential double top... or double top breakout.  For the sake of America, let's hope its a breakout.  Maybe the government will send us Citigroup Investment stimulus checks once Citi gets to $8.

 

p.s. I am getting a kick out of every "The Bailouts Worked!" story.  So you mean to tell me when government tells the world a company won't be allowed to fail, and the Fed feeds said company free money on which it can lever up and mint money 24/7, the bailout "worked".  Shocking.  Trust me, we could take failing Joe6Pack's Acme Tool & Die Shop and if the government protected it in bubble wrap while Bernanke funneled money into it each night, that bailout would "work" too.  I just love the logic of it all.  Hey our "investment" paid off; all it took was depriving all Americans some 2 years worth of any interest in their savings account.    This is modern day "success" in Cramerica Citimerica.

[Feb 17, 2009: Hedge Funds Pile into Citigroup; as does Bruce Berkowitz of Fairholme Funds]
[Aug 26, 2009: Citigroup Surges on John Paulson Investment]
[Feb 22, 2009: WSJ - U.S. Eyes Large Stake in Citigroup]
[Nov 24, 2008: Details of the Citigroup Bailout]

No position

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com