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What a day! The broad market trend started to show downtrend last trading day, however today has a big rally. One can tell this is a consolidation phase and a bigger rally is coming. I am neither bullish nor bearish but I am just here to interpret what I found from the model.

 

Let's continue the case study of CitiGroup, today we see quite a big bounce on the finance sector with Goldman Sachs leading the rally 2 days ago. Today BAC and JPM were rallying as well and this could be a potential of a multi-week rally. CitiGroup shows a little improvement on price and trend level as well, only LT trend shows a negative (red). Could this be changing hands between old time holder and new jump in buyers? Sure. People who bought in the highs are sick of it but the new comers see opportunities. As I said, the downside risk is minimal but the upside is huge and that's what I believe.

 

Have you ever caught a crab? You might touch it with a stick before you use your hand to catch it and this is similar to CitiGroup IMHO. It may cut you hard if you are careless and impatient. Try to place small trades and see what happen and average in more when you see the opportunities and that's what I have been doing on most stocks. The good part is you may get an incredible price.