Citigroup breaking downCitigroup is another bank breaking down...
Until it can regain lost support (now resistance), its on a slippery slope with downward bias.
#citigroup #banks #inflation #recession #fintwit
4C trade ideas
Stocks pairs trading: WFC vs CI'm exploring a pairs trading strategy involving two giants in the banking industry, Citigroup (C) and Wells Fargo (WFC). Both banks are well-established and have a wide range of financial products, but there are key differences that present a trading opportunity. The idea is to go long on Citigroup and short on Wells Fargo, aiming to capitalize on their reversion to a historical relationship.
Why Go Long on Citigroup (C):
Valuation: Citigroup has a lower P/E ratio of 6.49 compared to Wells Fargo's 10.28, making it less expensive relative to Wells Fargo.
Dividend Yield: Citigroup offers a higher dividend yield of 4.82% compared to Wells Fargo's 3.15%. Over time, reinvesting these dividends could offer a significant advantage.
Restructuring Plans: Citigroup announced a major restructuring that could lead to long-term cost savings and operational efficiency. Although it may lead to short-term layoffs, the strategy is designed to bolster the bank's financial future.
Return on Assets (ROA): Citigroup's ROA is 0.56%, comparable to Wells Fargo's 0.87%, suggesting that both banks are effectively using their assets to generate earnings, but Citigroup offers a better valuation.
Why Short Wells Fargo (WFC):
Valuation: Wells Fargo's higher P/E ratio of 10.28 suggests that it might be overvalued relative to Citigroup.
Recent Legal Troubles: Wells Fargo is involved in multiple lawsuits, including one that accuses it of raising interest rates artificially on VRDOs (Citigroup accused as well). This could potentially affect investor sentiment and push the stock price down.
Debt-to-Equity Ratio: Although both banks have a significant Debt/Eq ratio, Wells Fargo's stands at 1.44, which is less than Citigroup's 2.77 but comes with a higher valuation, making it less appealing.
Decision:
Long on 1 C
Short on 1 WFC
$C - Looking for directionCiti looks interesting - there is horizontal support around 40.60 and price is also testing upper range of downward channel. Should we get a break to the upside, initial TP would be 48.50 - 48.90 - next level of initial resistance. Stop loss on a long from here would be a close below 38.70. As always, wait for confirmation of breakout before entering any long position.
Long entryGood long opportunity here. I'll be writing some $39 puts here for the premiums.
Use a stoploss,
thanks
$C with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:C after a positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 50%.
Citigroup's Struggles (C:NYSE) Underperforming Stock and Concerns over Business Transformation: A Closer Look at Citigroup's Valuation
Citigroup's stock has been underperforming despite its relatively cheap valuation. Investors have expressed worries about the potential execution risks associated with the bank's ongoing business transformation efforts. This has raised questions about the effectiveness of the strategies being implemented to drive growth and profitability.
Q2 Earnings Report and Cost Control Challenges: Examining Operating Expenses and Revenue Trends
In its Q2 earnings report, Citigroup reported a 9% year-on-year increase in operating expenses, reaching $13.6 billion. Interestingly, this occurred alongside a 1% year-on-year decline in revenue, highlighting concerns about the bank's ability to effectively control costs. The disparity between expenses and revenue growth is a key focus for investors as it directly impacts the bank's profitability and long-term sustainability.
Management's Confidence and Expense Outlook: Assurances from Citigroup's Leadership
Despite the challenges, Citigroup's management remains confident in its ability to address cost control concerns. They have expressed their commitment to "bend the cost curve," suggesting a strategic focus on optimizing and streamlining operations to achieve greater efficiency. Additionally, management has assured investors that the near-term expense outlook remains unchanged at $54 billion, indicating a willingness to address cost-related issues proactively.
Conclusion:
Citigroup is currently facing performance challenges with its stock underperforming and concerns over executing its business transformation effectively. The Q2 earnings report revealed a notable increase in operating expenses despite a decline in revenue, raising questions about the bank's ability to control costs. However, management remains confident in its ability to address these issues and is committed to bending the cost curve through strategic measures. As the bank continues its transformation journey, investors will closely monitor its progress and actions to assess its potential for improved performance and shareholder value in the long run.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
#C trade plan up to 15-SepDetected 21 - Jul straddle is significant. More than 2.4M$.
We primarily consider levels to be activity zones, but not to be a super-fine level for establishing a limit order. Use them in combination with our own strategy, not in alone.
Stay tuned!
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Keeps pushingPrice keeps pushing higher. It found the downtrend resistance but it wasn't pushed back down to hard. Actually the price is testing again the resistance and I think eventually is going to break up. We may see another small rejection but bulls are in control at the moment. The nice this thing about this trade is that Citigroup pays dividends (%4.03 yield, not bad). So you can enjoy the dividends while you wait for a break up.
Citi bank (C) 💎 Diamond bottom forming. Pattern is almost 90% completed .. breakout , if it does happen should in the next 3weeks.
Major pennant on the daily
Target 70$
C Citigroup Options Ahead of EarningsIf you haven`t bought C here:
Then analyzing the options chain of C Citigroup prior to the earnings report this week,
I would consider purchasing the 47usd strike price Calls with
an expiration date of 2023-8-18,
for a premium of approximately $1.23.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Citi Group (C) might break out its rangeCitigroup has been trading in this range for 14 years.
Could it continue to keep going sideways? Yes.
I will take a jab at this for a long term investment
Invalidation: Monthly Close below $43.11
$C Citigroup catch upLooking at long term charts, the bank crisis has opened an opportunity to invest in bank stocks. Lowest risk is to go with the too big to fail banks. Citigroup is one of them. If you compare it to the other big bank stocks since 2008 you'll see that C has lagged behind while others recovered to pre-crisis levels. I think C can catch up in next few years. It is my choice to invest of the big banks.
Citigroup to fall around early June
Head-and-shoulders forming on the 5-day.
Credit card defaults reaching all-time highs.
Cash exodus (mostly to money markets, bonds, etc.) means the hurt on Western/U.S. banks is only just beginning.
Trend is downward.
Looking for a bounce around the bottom of the LuxAlgo indicator channel.
Is it just cause Im looking for it? C Head and Shoulders patternHead and shoulders pattern established for Citi. Is for the biggest banks/financials/Transports, on the planet. JPM, GS,WFC, BAC, IYT, VTHR. Seeing it everywhere
C Q2 2023Looking at Citigroup's chart and publishing to keep track of the movement. The chart is forming a head and shoulders and could get ugly if the pattern plays out.
CITI GROUP MAYBE MAYBEThis bank holds more cash around the world but we know that banks has no more cash at their vaults because of Federal reserve banking system. Interest rates kill them.
So we might see CITI group might go below or pump atleast there is a buyer.
Follow for more.
This year is interesting on banks......
CITI Stock Chart Fibonacci Analysis 042623Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 47/61.80%
$C with a bearish outlook following its earnings #StocksThe PEAD projected a bearish outlook for NYSE:C after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 50%.
$C holding above $49 and through $50 looks pretty goodCiti group had a nice bullish candle close post the bullish green candle. It held the upper range of the bar and didn't sell off on heavy volume.
Citi Bank - Breakout Citi bank is traveling towards the resistance @ 52.
Once it touches 52, we can expect a short pull down to 49 or 48.
Once it crosses 52/53, it will fly.
C Citigroup Options Ahead Of EarningsAfter the last price target was reached:
Now looking at the C Citigroup options chain ahead of earnings , I would buy the $52.5 strike price Calls with
2023-9-15 expiration date for about
$1.28 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
C Citigroup Medium term OptionsThis bank sell-off looks like a buy opportunity if you think medium to long term.
Looking at the C Citigroup options chain, I would buy the $45 strike price Calls with
2024-1-19 expiration date for about
$5.55 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
