A reader asked me when I will consider buying Citigroup . I spent over 15 years in the financial industry (mainly Swiss based private banking). Its the first time I see such fear of banks .....I often get asked the same question ; can you recommend a safe bank ? No, I cannot .....
The Swiss had a "safe reputation ......take a look at UBS ...... do you remember their ads ? Funny, I do not see them anymore ......
Who killed the economy ? The Banks !
Now, about Citi .....
Do you see that pattern on the chart ? Its called an inverted head and should pattern .
Head ? around 15$
Right shoulder around 17.5 in a few weeks/months
If you see that pattern , get ready to re enter C
Otherwise ........enjoy the wild ride .......and if you need a loan, go to the Hedge Funds, they have lots of liquidities ..
Weekly chart courtesy of www.stockcharts.com
4 comments:
Ah! So we will patiently wait for the head & then the shoulder to form...
Standard and Poors thinks that this quarter results will be abysmal for financials.
I have been long for the SKF for a while now
Sealy's Reporting Earnings tomorrow...
Do you have a position?
Sealy (ZZ) price rise suggests that investors assume that good numbers will be published ....
Patience, let the numbers come out with real increase in volume
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