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Cut Jobs, Raise Rates, Buy Shares

Published on November 14, 2008

Cut Jobs, Raise Rates, Buy Shares

November 14, 2008

A day after Citigroup (C) hit a multi-year low and relaxed below $10, CEO Vikram Pandit’s bought some shares (~>US$8MM) and announced to axe another 10,000 jobs. He also decided to raise rates on credit cards. Weren’t they suppose to lower the rates when FED is even willing to go lower than 1%, hello!!!Sure “they” know something that I don’t?

Sales fell a larger than expected 2.8% for the month (consensus -2.1%), while Sales less autos declined a larger than expected 2.2% (consensus -1.2%). Doesn’t spell well for the upcoming Christmas Season.

Freddie Mac lost $25billions, when are they going to stop bleeding money, what a mess! Billions has now no meaning. As Richard Koo mentioned in “Balance Sheet Recession“- “when temptation (or call it greed) wins over reason (call it rationale), disaster will not be very far-off”…and that temptation seems was too much (or too little)..

Markets sky rocketed yesterday soon after penetrating October lows, many were taken by surprise and sure stop loss orders might have been triggered too adding to the pain, ah! The bounce was quite dramatic. According to Lowry’s, the volume expanded on this retest of Oct lows and the up volume fell short of 90% of up+down volumes. was in deed >90% (they confirmed later their analysis was available, based on prelim indication it wasn’t). The new lows also expanded vs day ago. Let’s see if there is a follow through to this rally.

Profitable Trading, OP

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