Wednesday, 11 March 2009

Hold the front page - Citigroup reports operating profit

The 75 level on the SPY proxy seems like a feasible target in the near term.

It is worth noting that news from Citigroup (C) was cited as one of the triggers for yesterday’s rally. Apart from the fact that the bank simply said that it had been able to make some operating profit in January and February - wow - isn’t that what banks are supposed to do - the peculiarities of the way that the Dow Jones Industrials is calculated resulted in just a miniscule contribution to the DJIA surge.

As noted by another commentator

Citigroup rose the grand total of 40 cents per share -- which means that its contribution to the 379-point rise in the Dow was a whopping 3 points.

Yesterday's rally was one of those quintessential moments when perceptions morphed from seeing a half empty glass to a half full one. That is truly the enigma of the markets and the human psyche.

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