Citigroup

I was asked about Citigroup. Here is a my reply.

I don't care about Value or company fundamentals. All I care about is the price and where its going. That's all that matters when I buy or sell a stock. I'm just a guy that trades from his home. I'm not an analyst for individual stocks, but if I had to guess, I would say we are not out of the woods regarding the current housing crisis tied to many banks. Washington Mutual will go before Citigroup if there is a major bank that fails. I thought Goldman Sachs statement a few weeks ago, telling investors to SHORT Citigroup was outrageous (C was trading at $17 then). The fact that C was on the SEC banned naked short list is good for the company stock price. If you held a gun to my head and told me I had to choose to buy or sell C, with a holding period of 1 year, then yes I would buy, I would buy deep in the money LEAP Calls. Possibly averaging in at small pieces at a time. I said BAC was a buy when it was at $25, before it dropped to $18., now BAC is at $29.
I have a macro look in my trading because I trade bond futures and stock indices. My outlook is for bond yields to rise,(Bond futures down), and possible bounce in the stock market in certain sectors, probably financials. 30 yr mortgage rates are on the rise. I'm thinking of switching my 401k to a bond based fund, instead of the 50/50 bond/stock ratio that I currently have that is losing money. Without a doubt, the FED will raise rates within the next year, possibly the next meeting, and mortgage rates are going to rise too. The double edged sword of rising mortgage rates and declining housing prices that is occurring has me worried.

FRE- WEAK MARKET AND FEAR OF INFLATION AMONG REASONS FOR SPIKE IN MORTGAGE RATES THIS WEEK