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Monday, March 22, 2010

Trade (Confession) - C

I bought Citi today. (Feel dirty saying it :)

The chart looks interesting to me. Its consolidated and looks to want to break its long-term negative trend.

Since I like the technicals, I looked into the fundies, and this clip from Dick Bove (the Citi eternal bull) sold me on it. link
He indicates to wait, as the Gov. selling of warrents will cause the stock to decline. But since I like the technicals here, I bought an initial position, and will buy the remaining if the decline is seen.


  1. Echo,

    if you have a moment and the interest- I have learned a great deal from reading you site. Specifically, about how to use different technical indicators, ie CCI for USO and PBR ( which for the most part is a nice guide for long trades off support). I can't thank you enough for the teaching you do. That said, I still do not understand the slow stoch Vs default full (14,3,3). If you have a moment to discuss, many thanks in advance!!

  2. many thanks for the kind words.

    the slow stoch should only have 2 defaults for the %K and %D. (for instance 5,5) Sometimes the default works, w/respect to how the stock trades. By that I mean a pattern can be developed from those values. Other times, I have had to adjust them due to the dynamic of a particular security.

    The key is to ensure the values properly reflect an oversold condition, and whether or not you can decifer it.

    its all in the translation. the "proprietary" aspect of it is in the interpretation. (as a fancy hedge fund manager would say :)

    So long as you can accurately decipher it, regardless of default values, your golden.