Smart Trend’s Power Rating called for a general down-trend in Citigroup’s (NYSE: C) share price on October 28th, 2009 when the stock price was sitting at $4.13 per share. One month later, the stock’s price has dropped by 2.9% down to $4.01, according to a company press release.
Citigroup has recently been under the market’s scrutiny as Bank of America repaid its TARP funds, leaving only Wells Fargo and Citigroup to be the only large-cap banks yet to repay their TARP loans. Citigroup has also been hammered because various investment groups around the world have liquidated their Citigroup holdings, leading many to believe those trades as a vote of no-confidence.
SmarTrend uses a proprietary recognition system based on pattern recognition in trading to predict where stocks might be headed in the future.
Power Rating correctly called that Citigroup would likely see somewhat of a decline in the immediate future, but like many other rating systems, its successes are highlighted and its failures are minimized. For example, before the string of bank failures began, many of the firms that failed had three and four start ratings from various services that rank the quality of banks.
SmarTrend analyzes over 5,000 securities throughout the trading day and provides changes in trends to real time to its subscribers.
