Citi Saves Stocks
Citi to the rescue, apparently.
I, for one, didn't have "Citi saves stocks" on this week's bingo card, but at a time when seemingly every "surprise" is a negative development, any news that doesn't immediately precipitate a selloff counts as clemency.
Shares of Citi took off Friday (figure below) in a rally I (wrongly) assumed would fade. Instead, it gathered momentum. The catalyst was, of course, a well-received second quarter report that boasted top- and bottom-line beats despite considerabl
Everyone talks their book. Nobody knows nothing about anything right now. The next two weeks are unlikely to provide a positive catalyst in terms of earnings expectations. While the path forward should be lower, I’m not betting against a run to $4,200 for the S&P 500.
Absolutely. a 13% pop and everybody’s onboard. “Going long…”, “this stock is too cheap.”
Or is it “dead cat bounce,” “strong headwinds, or “don’t catch the falling knife.
We should go back to augury and entrails.
H-Man,
Grabbing and holding on to dear life for anything that sheds a chance for a rally. This probably explains the rally more than anything else.
The S&P volume today was 2.3B vs the average 3.9B, NASDAQ 3.8B vs average 5.1B.
I get that the summer’s light but when I see rallies without volume it doesn’t seem like an earnest turnaround, though a good opportunity for Citi’s traders to profit from market volatility.
There’s a lot riding on earnings that are backwards looking (when inflation seems to be still trending high; because the public believes inflation will drop from 9.1% to 5.2% doesn’t mean it actually will – at least not without significant help… like a Recession). It’ll be more interesting if any notable CEO will make any predictions.
Still, the most reliable bet is with the Fed. Seems like they haven’t beaten inflation yet…