Much like the Dallas Cowboys are America's team, Citigroup (C) is America's stock; since we're all part owners.

Today could be a big day... the stock has jumped back to Thursday's highs and sits right below the $5 level.  This level is key because it's a price point where most traditional institutional money (i.e. mutual funds, pension funds) can come in.  (many are now allowed to own stocks below $5)

The government is supposedly going to sell a huge batch of their holdings sometime soon but no one cares, the Bernanke Forcefield is up, and this institution is now federally protected, backstopped, and fed 0% Fed money via the IV every day.

So here is a good micro example of a potential double top... or double top breakout.  For the sake of America, let's hope its a breakout.  Maybe the government will send us Citigroup Investment stimulus checks once Citi gets to $8.

 

p.s. I am getting a kick out of every The Bailouts Worked! story.  So you mean to tell me when government tells the world a company won't fail, and the Fed feeds said company free money on which it can lever up and mint money 24/7, the bailout worked.  Shocking.  Trust me, we could take failing Joe6Pack's Acme Tool & Die Shop and if the government protected it in bubble wrap while Bernanke funneled money into it each night, that bailout would work too.  I just love the logic of it all.  Hey our investment paid off; all it took was depriving all Americans some 2 years worth of any interest in their savings account.    This is modern day success in Cramerica Citimerica.

[Feb 17, 2009: Hedge Funds Pile into Citigroup; as does Bruce Berkowitz of Fairholme Funds]

[Aug 26, 2009: Citigroup Surges on John Paulson Investment]

[Feb 22, 2009: WSJ - U.S. Eyes Large Stake in Citigroup]

[Nov 24, 2008: Details of the Citigroup Bailout]

No position