The amount of shares the gov. has to sell is too much to sustain a rally within C. Supply and demand will win, and the price will be capped. Today I believe indicated the cap.

(With trading volume in the billion, the selling should end sooner-rather-than-later.)
IMO, purely based on the activity that I see, I think MS has the green light to sell Citi north of 4.4 , which should cap the stock around 5.
Here is how I will trade it: As C approaches 4.5 I will buy it. If it goes lower than 4.5, I will buy it heavily. As city approaches 5, I will sell it. (Easy enough :)
I would like to maintain a core position when I anticipate the gov. selling has stopped, but we are probably a few months away.
NICE WORK, Echo!
ReplyDeleteThanks AGAIN for sharing it!
I'm thinking about reentering PBR- next week or two as it gets too oversold and if oil holds an 83 level- any further help would be appreciated.