Although the market was at least short-term oversold technically, and it needed to breathe some fresh air ... the main message from media is clearly a spin.
Reuters, Bloomberg, CNBC report (in random order) today:
Reuters: Citigroup CEO says bank profitable
CNBC: Citigroup Stock Rebounds on Pandit's Upbeat Report and Citigroup Sparks Big Rally, But the Pros are Skeptical
Bloomberg: Stocks Post Best Rally of 2009 on Improving Citigroup Outlook , or Pandit Says Citigroup Having Best Quarter Since 2007
Any questions? Well, in the morning Wall Street Journal (WSJ) still reported:
U.S. Weighs Further Steps for Citi
Obviously, WSJ has no clue, and "fundamentalists" will find the value in Citigroup (C) at $1.05 anyway. Assuming that the price corresponds the value of a long term call option, as even I still hold the price of ca. $45 couple of years ago in my brain, and Citi was in my portfolio then... No wonder that John Hempton's radical view of banking is gaining popularity, and Options Trader sees the obvious ...
This is really incredible how much trust is attached to what Pandit really says. And, did Pandit really mean it?
Fascinating action ...
Major U.S. stock indexes up 5-6% for the day so far (it is still 1 hour before cash market closing)!
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