Citigroup (C)is trading under $2. I mentioned in a previous entry last month that I felt it was going to grind down sub $2 and it indeed did. But thats not necessarily reason to buy.
A rolling stone gathers moss and Citigroup unfortunately rolled downhill gathering thorns and bruises the last two years. The behemoth US banking company who's stock has been crushed during this financial meltdown is now trading at 18 year lows. It was just a mere two years ago it was $55/share.
Has anything really changed since the 4th quarter 2008 report? Has the economy got any better? Other than Citigroup restructuring itself trying to clean itself up, the economy continues to sling dirt at everything that moves dragging everything down.
I do feel though it is time to buy Citigroup between now and April. After hitting $1.61 as the low on Friday and trading $2.40 this morning, I sense its going to get volatile for a week and actually move up. The reason? The financial sector, the weakest in the S&P 500 this year, looks terribly oversold.
About Kerry Kobashi
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.
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Oversold because they are the worst that dragged the entire
The entire market was dragged into this nevertheless the entire world. Oversold is one thing - reporting $40 billion dollar loss is another.
Fear didn't sell this. I don't see it going any where any time soon. For day traders it is a dream and that is the people controlling the market now.
Nice call!
Its trading $2.80 after hours. Where do you see it heading into April?
Given the oversold condition
The next 8-10 trading days I see volatility and a range of $1.80-$3.75.
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.
Super
Your $3.75 call got hit today. Nice going man. Keep up the good work. I'm definitely visiting this site more.
Hey just wanted to say
Nice going on the Citigroup call. You nailed the $3.75 top range. Where to next? Anyway thanks!
Citigroup is still uptrending
But will likely move sideways after a good healthy bounce. Look for consolidation over the next 5-8 days. Volatilty likely to die out too.
Range: $2.15-$3.85
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.
Citigroup out of the Dow Industrials
This one has to hurt the stock in the long run. I am lowering my outlook to $1.80 on Citigroup.
Currently trading $3.51.
Volume is just too soft and the movement a slow trickling down look. I see mid $2's in next 3-4 weeks with a dead cat bounce and then another wave down to $1.80.
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.