Oct 28, 2004

Fun with Citi

Watching C (Citigroup) trade has been fun today. It opened on a gap lower (the likely cause) and is now above yesterday's high. This is a good example of two things: 1) that moves in the illiquid pre- and after- market make good fades and 2) that oversold stocks will have trouble going down.

Citibank at 44 has retraced up near the trendline I pointed out last week and will struggle to get back above that bad boy but I would expect it to spend some time consolidating beneath it.

Still long some C calls but I have scaled out of 80% of the position.

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