Two Ways: Rebuilding This Citi?
Strengthen your portfolio in good times and bad.
According to Bloomberg, Citi posted net income of $1.6 billion for the quarter which compares with a net loss of $5.11 billion for the same period a year earlier. Revenues, meanwhile, nearly doubled to $24.79 billion boosted in part by trading revenue in the fixed-income segment.
Noteworthy, however, is that Citigroup grew its loan loss reserves in its credit-card business by 64% from a year earlier to $3.09 billion. The bank partially offset these reserves by increasing the interest rates on credit-cards which rose to 13% from 11% a year earlier.
Shares of Citigroup fell today by 9% to $3.65.
See related article, Minyan Peter's Bank Earnings: The Hole Truth.
From the Bull Pen: Is gold an opportunity here? One can use the ETF (GLD); limit risk with a sell stop below the 200 DMA(84.30)
From the Bear Cave: Noteworthy is the failure of the S&P 500 at 875. Bears can play the downside with a buy stop above that level. For a trade, one can consider using the Ultrashort S&P 500 (SDS) or simply the S&P depository receipts (SPY).
Have a great weekend, Minyans!
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