Friday, January 14, 2011

Bank Run Part 2: Citigroup (C)

I am clearly overdoing it, I know. But since my BAC call options have been a success for me (up 300% since Christmas Eve), I thought, "Whatever..." Ben's stock market put is solidly in place.

So I bought C, February 5 calls, 2 days ago. It sat there yesterday, and it moved up a bit today, on the wake of JPM's stellar 4th quarter results. One junk after another, you might say. If you think about them on fundamentals, there's no way in hell that you would want to touch them (other than Ben's put on the market). I am just looking at their charts, and BAC had seemed a good buy back then, and C looked good enough to buy 2 days ago, as it was breaking out of a short consolidation. (Some technicals are signaling a slight negative divergence - MACD histogram, CCI, RSI somewhat - but do you care? The only time the technical signals are followed is when they happen on gold and silver..)

Both C and BAC continued to behave well today. Then I just saw this chart posted at Zero Hedge, and now I know why, and the reason is called "short squeeze". C regained the top spot for the most shorted stock on NYSE, and BAC is ranked 7th.

Ooops... C will report its Q4 earnings on Tuesday 1/18 (premarket), BAC on Friday 1/21 (premarket). They almost always disappoint... Oh well. I guess I did push my luck one day too far. C'est la vie.

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