There was capitulation and it was me! I sold 1000 Citi for a loss at $2.94. As I write this, Citi is at $3.16. C’est la vie
The market loves to see capitulation. Shares come out of weak hands and move into stable hands. Limit orders are taken out. I haven’t felt too good about the way the financials have been acting and decided to take my loss on this trade and lighten up other bank positions.
Perhaps I am making exactly the wrong move, but you never know. Geithner is speaking and the May 4th stress test results will be a real swing point.
There are times when I feel like you should just use me as a contrarian indicator. Today is one.