Twitting the Forex Market

Tuesday, March 30, 2010

Why you should not buy Citigroup now. (NYSE:C)

1) US Treasury department is planning to sell their stake in Citigroup in 2010. Would you buy when such a big sale is taking place? I won't. At least, I will hold my horses with alarm bells ringing.
2) Technical PictureThe upside of this trade is not worth taking a risk. Safe price targets are between $4.70 - $5 (fibs 161%). Stops should be below the 10SMA ($3.80 - $4.00).
Clearly your Risk-Reward ratio is <2. I'm not comfortable with this. 3) Chasing the missed channel breakout 4) Temasek Holdings have previously sold their stake in Citigroup, leaving a small speculative portion. I hear Temasek Holdings. Short EURO instead.


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Posted by at 9:06 AM
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2 comments:

  1. Time to go long on the euro dollar. Until the next credit downgrade or Mkt affecting event. Dtd 10 may 10

    ReplyDelete

  2. George Soros has unloaded his Citigroup Shares.
    http://etfdailynews.com/blog/2010/05/17/george-soros-unloads-most-of-citigroup-c-stake-sells-some-of-the-spdr-financial-etf-xlf/

    ReplyDelete

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