Citi Earnings

I'm not a trader per se but I pay attention to short term action in my stocks. I do this for two reasons:

1) To learn how to profit from timing the market (There is money to be made with timing, especially for small investors)

2) To better understand how the stocks I own and am interested in act given a particular event or move in the overall market.

Let me take you through the price action BAC this morning.

Citi reported a 33 cent loss for the quarter this morning sending US financials lower. My position in Bank of America was down after this announcement about 3% and is now down a little less than 1%.

The recovery in BAC's price is bullish. Investors looked at the dip as a buying opprotunity because they think that, relative to Citi, BAC will report better earnings for the quarter and/or for the year and furtehr in the future. They probably think this because Citi receive's 68% of it's revenue overseas where the recovery hasn't necessarily been as dramatic and Citi is not a large deposit bank like BAC. I am of the same opinion, for those reasons and more.

The point is that long term investors in BAC (such as myself) are waiting for it to distinguish itself by relatively outperforming the likes of Citi and returning to a price range similar to WFC and MS ($25-$35). Of course I haven't a clue as to how soon that will happen.