|5 min CL_F|
Quite the headline filled day would you say?…all this on a day where the volume had a case of the Monday’s..
First – We have the AT&T/T-Mobile M&A deal (dumb IMO, anti competitive)
Second – The Citigroup announcement they are reverse splitting their shares 1 for 10
Third – Charles Schwab (the Walmart of brokerage) announced it is purchasing OptionsExpress for 1bil$
Fourth – Market rallied in the face of nothing
My thoughts on the Citigroup reverse split… “fleecing”…. the stock is under 5 bucks because
A. Citi fucked up the past 10 years
B. Citi diluted the piss out of their share structure.. Again the fault lies in point A.
C. Many option firms base their strategy on exploiting the large volume in Citi options, NOT good for option volumes and market volume as a whole.. C volume will drop from 500-1bil to less then 50 or so million shares a day.
D. On a positive note, HF trading gets kicked in the nuts. Today volume was very low on the index’s and C. Stock was off heavily… Foreshadowing?
This market is back up to it’s wonky correlated low volume slide of hand trends… The futures were bid
the entire night last night, this morning and afternoon. Trade what you see not what you think, stay flat overnight on the index’s if you are unsure of the tape to allow you to stay nimble in the face of new headlines.
Keep your eyes on crude, the trade is nowhere near over. 103 held firm today, the Index’s have weakened a bit in after hours trading… I am attributing the weakness to stepped up bombings in Libya’s capital and the bombing of Hamas targets by Israel.
Final note… What is happening to the dollar makes me want to slap somebody…