Update on USD/CAD Trade

Sure enough, the trade closed out last night while I was asleep...I love it when that happens. The down-trend got a little choppy but it hit the profit target.The horizontal green line is the entry, the red is the stop and the blue is the limit order that was placed. It's not a coincidence that the profit target is about 3 times farther than than the stop...this setup had a favorable risk/reward ratio.

On a different note, there's a lot of chatter on the news wires about Citigroup getting a bailout. Fortunately I added some Citigroup to one of my CNBC portfolios on Friday because it looks like that stock might take off today...only thing that would be better is to have it in my real account but this would never happen because I don't bottom feed for stocks like this when I'm trading my money.

As for the markets in general, they could go either way. If the Citigroup news is big enough we could see a nice rally today but, the path of least resistance still seems to be down.
There are several points of overhead resistance that the market will need to get past and then hold them. The MACD is still bearish but it looks like it could turn up...today will probably be a pivotal day and it will set the tone for the following week. Given what we saw the last three trading days of last week, anything is possible. The only somewhat sure thing about this market is that moves happen very quickly and they tend to be big. Have a good Monday!

Good luck out there.

TLT

Citi Hits 12 Year Low

Citi is imposing new initiatives to help at risk borrowers stay in their homes. These new initiatives coincide with a brand new 12 year low for the companies stock. Ouch! Below is a monthly chart of Citi that goes all the way back to the late 80's...you can see how much faster the fall occurs as opposed to the rise.

It will be interesting to see how these new policies work out for Citi in the long run. I've been negotiating with one of the other big banks on a mortgage for an estate that is currently in probate. Without mentioning any names (although it's one of the top 4), I will say that I'm not very impressed with the way the bank has been handling the situation. The bank I'm dealing with is doing everything possible to not work with my clients to keep the property out of foreclosure...a very opposite approach to what Citi is imposing.

Maybe the bank I'm dealing with just needs their stock price to hit a 12 year low and then they'll get more friendly, or maybe their policies work better for them and that's why they are not in the same situation as Citi. Who knows, but it sure makes sense to try to keep people in the homes so that mortgage payments can continue to be made. Only time will tell which method will work.

Make sure to take a moment today and remember all the veterans...we're all very grateful for their services.


Good luck out there.

TLT