In an exclusive interview, Citigroup CEO Vikram Pandit addressed concerns about the government’s stake in his company and what that means for share price.
He explained to Maria Bartiromo that Citi has strong operating business, and “profitability is not a concern on any long term basis."
He went on to say “we have $200 billion in liquidity, we have $36 billion in reserves on our balance sheet. We have worked very hard to put our capital position in very good order.”
How should you trade Citi in the wake of Pandit's comments?
It seems to me $3.50 is holding as support in Citi muses Todd Gordon of Forex.com. Considering the financials have held up relatively well, when the market bounces I’d expect to see more upside in Citi.
I think there are better opportunities in financials, counters Jeff Tomasulo of SMB. Citi is a long-term trade. But if you’re a trader looking to make profits in the short-term I’d look at Goldman , JPMorgan or Wells, he says, not Citigroup.
I’m seeing bullish call buying in the XLF , reveals Scott Nations of Nations Shares. It seems big investors are taking a stand and betting financials are going higher.
As far as I’m concerned Citigroup is a day traders dream, adds Steve Grasso of Stuart Frankel. There are very few institutional owners in this name which accounts for the swings.
BULL MARKET BROKEN
Meanwhile, the traders are closely watching the action in the Dow and S&P –.after new data showed the U.S. economy grew at a 5.7 percent pace in the fourth quarter -- much higher than expected.
Other data showed January consumer sentiment rose more than expected to hit a two-year high, and business activity in the U.S. Midwest expanded more than forecast in January
However, the market only traded modestly higher; effectively shrugging off the good news.
Is the bull market is broken?
I think the bull market is broken, short term says Steve Grasso. I wouldn’t buy until the market closes above 1121 in the S&P. It’s an ice cream man’s market, sell the pops!
I’m looking at 1050 and 1111 in the S&P, says Jeff Tomasulo as critical levels. They were support and now they’re resistance. If we fail I think you can go heavy on your shorts.
ROLLOVER IN TECH
Technology shares traded lower on Friday despite strong results from two tech titans. On Thursday after the bell Microsoft said it expects business technology spending to recover in 2010, while Amazon forecast strong 2010 revenue.