Powerful Bear Market Rally on Leaked Memo

Wow, what a day. After a seesaw day yesterday, the indecies made a powerful move to the upside today on some very interesting news.

Asia:
Nikkei => 7,054.98, -31.05, -0.44%
Hang Seng => 11,694.05, +349.47, +3.08%
Straits Times => 1,485.75, +28.80, +1.98%

Europe:
FTSE => 3,715.23, +172.83, +4.88%
DAX => 3,886.98, +194.95, +5.28%
CAC => 2,663.68, +144.39, +5.73%

U.S.:
Dow => 6,926.49, +379.44, +5.80%
Nasdaq => 1,358.28, +89.64, +7.07%
S&P => 719.60, +43.07, +6.37%

As for me:
AMD =>$2.32, +0.18
MIPS => $2.36, +0.17
NG => $2.43, -0.11
AMD DG => $0.11, +0.01
BKC PX => $2.15

First, a memo was leaked indicating that Citigroup Inc operated with a profit for both January and February of this year. A surprising announcement considering the billions of dollars in government aid they have taken even up to the end of February.

So, if they truly are making a profit and can afford to give out some sort of bonus' to their Smith Barney fund managers, then why are they being given any aid at all. Why did the U.S. Government have to take a 36% stake in the company. Maybe if they had disclosed that they made been making a profit their stock price would not have dipped below $1.

So, the question arises, is it time to start considering Citigroup Inc. for a stock position? Only if you are a speculator. The stock price is well below all the commonly followed moving-averages (20/50/200), there has been no recognizable or significant candlestick patterns, the RSI is only now moving back up after being beaten below 30 points.

But on the side of speculators, the Chaikin Money Flow indicator is showing that volume is becoming less negative, the Stochastic and MACD indicators show that it is very oversold but turning.

So what am I doing? I am sitting on the side lines. I am going to wait for a pull back and an indication that this pop wasn't a one time thing.

Second, U.S. Rep. Barney Frank, chairman of the House financial services committee, said that the up-tick rule, intended to hinder shorting stocks unless they first moved up in price, may be reinstated within a month from now.

Well it looks like all the discussions on the financial media outlets have been heard. 'Bout time!

That is my opinion, you can take it or leave it.

Disclaimer: I am not a stock broker; I am not a financial advisor; I am not recommending to you what to buy or sell. I am just an opinionated investor. If you decide to follow in my footsteps you are taking risk. It is inevitable that I may be wrong. So if you are going to follow in my footsteps that is your own personal decision. I am not responsible for any loss that you may, and probably will, incur regardless of my opinion.