Technical Analysis on Citigroup(6 March 2010)

Citigroup ST: the upside prevails
Our pivot point stands at 3.1.

Our preference: As long as 3.1 is not broken down, we favour an upmove with 3.8 and then 4.35 as next targets.

Alternative scenario: Only the downside breakout of 3.1 will invalidate our bullish scenario. In this case, a decline should shape towards 2.53 at first, and then 2.06.

Comment: The daily indicators are turning up and are calling for a re-test of the 4.35 area.

Trend: ST limited rise; MT bullish.

Supports and resistances:
5.4 **
4.35 **
3.8 ***
3.45 last
3.1 ***
2.53 *
2.06 *

Citibank (NYSE: C) Reportedly Seeking Buyer for its Egg Internet Business

Citibank (NYSE: C) is rumored to be looking for a buyer for its U.K. based Egg internet banking business, just three years after purchasing it for £546 million.
Several sources have reported that Citi held talks with trade buyers and a private equity firm over the potential sale, which would effectually take Citigroup out of the U.K. retail banking market all together.
Citigroup purchased Debry-based Egg, he world’s largest internet bank, in 2007 before the onset of the recession and the global credit crisis. Egg has been hit hard by the recession as well as competition from other online banking firms. The company posted a loss of £106 million during the second half of 2009.
The rumored sale of Egg is part of Citi’s ongoing effort to sell off non-core business and concentrate on its core operations in order to pay bank the debt that it owes to the Federal Government, which is currently the largest shareholder in Citigroup.
Egg currently has around 1,800 staff members and more than two million customers. The company was founded by Prudential in 1998. After failing to successfully sell the business, Prudential took full control of Egg in 205 by purchasing out minority share holders that valued the bank at just over £900 million at the time.
Following two years of lackluster performance, Prudential agreed to sell the business to Citibank in January of 2007.

"Professional" worker, how inflation eat up your salary?

http://www.pitchyourtalent.com/pyt/pyt-sample-pitches.htm

Please see above link.
Salary : SGD10,000
Working Experience : 24 years

He was an engineer before promoted to Manager. Please see the different :-

Capitalist/Smart Investor vs Stupid Worker

a) Stupid Professional Senior Manager -Joke if you see his salary...
Imagine , when he start work, starting pay is 2.5k.
In order to get 10k salary after 24 years working, he need to get 6% increment for every year.

6% is enough for inflation  ... LOL


b) Investors
Smart Investor with capital 100k.
Annual compound return 15%  for 24 years :-
2.86 million after 24 years with annual compound return 15%.

At 25 years, 15% of 2.86Million is 429k/year return.


Joke? Professional worker's increment is just enough for inflation. This is fact. What a joke?!

Initial Claims

The Initial Claims is going downward trend in US.

Technical Analysis on Citigroup

Citigroup ST: turning up

Our pivot point stands at 3.1.
Our preference: As long as 3.1 is not broken down, we favour an upmove with 3.8 and then 4.35 as next targets.
Alternative scenario: Only the downside breakout of 3.1 will invalidate our bullish scenario. In this case, a decline should shape towards 2.53 at first, and then 2.06.
Comment: The daily indicators are turning up and are calling for a re-test of the 4.35 area.
Trend: ST limited rise; MT bullish.
Supports and resistances:

5.4 **
4.35 **
3.8 ***
3.45 last
3.1 ***
2.53 *
2.06 *

Global Economy is actually improving

Those who fear that the US economy will undergo a double dip recession in 2010 are running out reasons for maintaining such a pessimistic view because the surprise move by the Fed last week, is actually some tightening but it will be gradual.

The macro backdrop for the US and global econmy is actually improving, month by month, quarter by quarter. Please read more about economy indicator.

Our Forecast!
a)First Phase :-
The first phase of the rally (March 2009) was a logical reaction to the irrational selling at the end of 2008 and early 2009.
b)Second Phase:-
The second phase will start when investors are convinced that the current economy and earnings recovery are on a sustainable non-inflationary path and not just relying on government steroids. The second phase of the 2009 bull market should be starting sometime in the next few months.

Why CITIGROUP can survive in this crisis?

- Technology Innovative in 2009/2010 will boost American's income.
- Housing Price will go up slowly.
- Tax Payer Support on CITIGROUP
- Strong Hedge Fund Manager Promote the CITIGROUP as Great Investment.
- CITIBANK - one of the world largest consumer bank! If this bank collapse, someone will buy this bank. I guess Warren Buffet is interested on CITIBANK's asset too.