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.
Disclosure: No position