Could be a Big Day for America’s Stock – Citigroup (C)

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

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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