Today :- Alice In Wonderland

Today's breakfast on fox news -
http://www.foxbusiness.com/markets/market-overview/article/citigroup-casts-shadow-wall-street-dow-tumbles-150_504851_42.html

Yesterday's Warren Buffet comments about US being in recession reminded me of Natahan Rothschild who made a fortune on the "Battle of Waterloo". Curious souls would like to read http://www.rumormillnews.com/cgi-bin/archive.cgi/noframes/read/39506. Its a classic example of how fear mongers could cost you fortune and make theirs while they are at it. Although Buffet's remarks, I truly believe, were more informative and not misleading at all.

UBS faces further writedowns -
http://www.bloomberg.com/apps/news?pid=20601085&sid=ahzF530iZp90&refer=europe
If you start salivating after reading "lowest since 2003", beware... its most likely to go down further. So wait and watch before you join the party. Its usually never too late to join the party...
There always some other party in town ...

Hedge fund sues WB/C -
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-23521247.htm

From this story -

C - $1.66 1Q 2008 $3b write-down $1.05 for 2008 30,000 job cuts
WB - $2.50 for 2008

Reading http://www.businessweek.com/investor/content/mar2008/pi2008034_305072.htm?chan=top+news_top+news+index_businessweek+exclusives

Citi (that never sleeps will never sleep :-) )
- $1.66 loss for 1Q 2008
- $15b subprime $3b misc. troubled loans
- $1.05 for 2008
- 30,000 job cuts

Whitney thinks Citi may have to sell $100b in assets and with the recent credit crunch when the flood-gates open will it create LTCM like havoc in the market? Bye bye dividend.

Will Citi go to sleep forever? Looks unlikely. However it will and has ceased to be the largest bank in the world. Well the worst case scenario puts the Citi stock at $15.19.

Beware of what you wish for.
Before I read anything meaningful on security analysis, I would look at the charts on Google finance and wish that I could buy at this point 10 years ago and sell at the peak 10 years after. Things do look beautiful and intuitive in hindsight. I am sure some such theory exists and may even being practiced. Well now that such prices seem to have created in some securities, my views have completely changed on the technical (chart) analysis.