This chart shows a broken company.

(C: StockChart chart)

For seven sessions following Oct 31, C traded about 1 billion shares and the price dropped from 41.36 plus the $0.54 dividend to a low of $31.05 on Nov 8. In other words, that was a loss of over $50 billion. The largest financial services company in the world plunged in an environment the equivalent of Black Monday October 1987.

Missing from Financial Entertainment TV this month were a line of honest financial advisors telling you what was happening to Citi and others. The Talking Heads were even saying that the selling was over-blown!

Do you recall, two weeks ago, my stating that Exxon (XOM) had dropped $50 billion in market cap in the space of just over a week and nobody was commenting? The difference is that with XOM, traders knew the company is financially rock solid, but were recognizing a broad market shift from Bull to Bear. However, with Citigroup, it’s a case of just doubting the financial strength of the world’s biggest financial company, which is far more serious.

In order to retain its place in the Cara list of 100 Global Best companies, I have to be satisfied that each company is financially strong, or at least stable during the rough patches. Since November 1, I have serious doubts with Citi, and I now believe there is a strong possibility the company needs to be restructured.

I did retain Citi on the Cara list of 100 USA Best companies this week, with the expectation of such a restructuring, but I will remove it if, as and when other rating agencies lower their ratings on Citi debt to less than A-, which is likely coming this week should an emergency plan not be successfully implemented.

In any case, I think nervous holders should dump the stock into any rally.

You may disagree, but if you look over the capital that has been lost from various international markets since the peak in October, you cannot deny there has been significant wealth destruction.

The Tokyo Nikkei 225 Average has plunged from a peak of 17489 on Oct 11 to Friday’s close at 14,889, a loss of -14.87 pct. It’s tough when you lose it because getting those 2600 Nikkei points back will take a gain of +17.46 pct. It is always harder to make it than lose it.

Tokyo Nikkei 225 chart

This month alone, to Friday’s close, the Shanghai Stock Exchange Composite Index has dropped -16.2 pct from 6005 to 5032. Making those 573 Shanghai points back will take a gain of +19.34 pct.

Shanghai Composite chart

Can these gains be made back? There is always hope. Look at the Hong Kong Hang Seng Index for example. From the November high on Nov 1 at 31,897 to Thursday’s close Nov 22 at 26,005, there was a loss of -18.47 pct. But the +536 point gain on Friday represented a +2.06 pct over Thursday.

Hang Seng Index chart

Do I think you should be talking about these current losses? Yes. In spite of the speculative froth that I wrote about at the top in mid to late October, these are real losses to real people, many of whom are not even aware of it partly because the positions are held in their pension, hedge and mutual funds, and partly because they are just not watching the market at all.

The people winning at this game are the proprietary traders employed by HB&B. Like thieves in the night, traders at HB&B are quietly making billions while they know that Mom & Pop are mostly oblivious to what’s presently happening, and too many Fund managers are hoping beyond hope for another profitable quarter on the long side so they too can get theirs.

These tables show a sea of red ink. Yes, I did call for Friday’s rally, which occurred, but I also opined that this would be a good time to sell into whatever strength the Bull can muster before passing away.

---

Table 1: Cara ETF List

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
XLE	74.05	1.90	2.63%	4.59%	-2.37%	-2.48%	30.88%	9.38%	9.06%	28.43%
XLU	41.92	-0.04	-0.10%	0.60%	-0.80%	2.29%	13.85%	6.34%	-0.52%	16.25%
XLP	28.54	0.29	1.03%	0.35%	1.39%	1.39%	8.60%	6.18%	3.97%	10.49%
IYH	70.15	0.82	1.18%	-0.55%	0.29%	-1.60%	5.55%	2.96%	-3.12%	6.43%
XLY	33.55	0.58	1.76%	-1.44%	-3.31%	-7.14%	-12.90%	-7.91%	-15.77%	-12.06%
XLI	38.17	0.50	1.33%	-1.62%	-3.88%	-5.21%	8.35%	-1.78%	-1.06%	7.40%
XLB	39.52	0.58	1.49%	-1.94%	-6.79%	-7.01%	14.19%	2.65%	-1.76%	12.75%
SMH	31.79	0.36	1.15%	-2.78%	-3.81%	-6.09%	-5.30%	-14.61%	-13.19%	-10.50%
IYZ	28.50	0.28	0.99%	-3.16%	-6.37%	-11.35%	-3.91%	-13.16%	-15.93%	0.64%
XLF	29.27	0.68	2.38%	-4.63%	-3.62%	-10.49%	-20.72%	-15.04%	-22.69%	-19.17%

Table 2: Senior oil & gas equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
STO	32.33	0.84	2.67%	6.03%	-5.55%	-3.84%	25.85%	17.14%	14.16%	21.31%
XOM	88.29	1.25	1.44%	4.50%	-1.26%	-3.58%	19.13%	5.42%	6.39%	21.09%
TOT	81.45	0.59	0.73%	4.44%	-2.92%	4.46%	14.77%	12.38%	7.21%	15.52%
CEO	173.70	14.70	9.25%	4.36%	-2.77%	-9.96%	84.26%	51.04%	84.34%	100.53%
CVX	86.67	0.92	1.07%	2.98%	-2.81%	-5.00%	22.12%	1.39%	6.47%	24.53%
SU	102.35	1.45	1.44%	2.59%	-8.07%	-3.58%	38.48%	19.36%	16.24%	34.14%
IMO	52.95	0.85	1.63%	1.34%	-8.60%	5.02%	48.49%	24.88%	13.07%	44.67%
PBR	100.78	1.74	1.76%	1.00%	-13.69%	14.81%	102.25%	75.67%	84.54%	121.06%
ECA	67.93	0.48	0.71%	0.85%	-7.21%	2.01%	49.82%	15.63%	10.38%	33.46%

Table 3: Senior metals and steel equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
NUE	53.23	1.21	2.33%	4.41%	-5.87%	-14.52%	-2.33%	3.30%	-17.80%	-10.31%
MT	71.45	1.71	2.45%	2.73%	-6.87%	-9.49%	75.12%	19.88%	21.99%	69.27%
RTP	436.05	30.32	7.47%	-1.11%	-0.94%	24.05%	113.65%	66.69%	51.27%	107.95%
BHP	72.82	2.97	4.25%	-1.73%	-5.24%	-11.63%	87.34%	19.46%	40.69%	77.35%
PKX	153.48	3.97	2.66%	-2.00%	-5.15%	-12.19%	93.23%	11.14%	33.02%	99.69%
TS	45.94	-0.36	-0.78%	-2.21%	-3.75%	-10.74%	-5.32%	-1.71%	-3.22%	0.00%
AA	35.15	-0.02	-0.06%	-3.25%	-6.66%	-8.44%	19.84%	-1.73%	-12.93%	15.51%
RIO	32.56	0.13	0.40%	-5.62%	-11.90%	-2.78%	12.98%	-27.68%	-25.90%	20.68%
GGB	26.88	-0.29	-1.07%	-7.21%	-10.07%	-7.79%	63.70%	18.99%	23.08%	72.64%
TCK	37.84	0.30	0.80%	-9.63%	-19.44%	-22.92%	-45.36%	-10.31%	-5.57%	-48.94%

Table 4: Senior capital goods makers and transportation

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
MMM	82.75	1.51	1.86%	3.89%	-0.10%	-3.88%	5.74%	-6.76%	-5.90%	1.57%
UTX	73.46	0.68	0.93%	-0.66%	-1.66%	-2.98%	16.96%	0.22%	6.70%	11.66%
CAT	68.63	0.69	1.02%	-1.58%	-5.25%	-8.09%	12.21%	-8.70%	-9.73%	9.30%
GE	37.67	0.50	1.35%	-1.67%	-3.46%	-6.20%	-0.79%	-3.71%	0.19%	4.67%
BA	89.54	2.13	2.44%	-1.97%	-7.00%	-6.73%	0.41%	-7.44%	-6.31%	-0.62%
ABB	27.15	0.31	1.15%	-2.16%	-11.79%	-6.51%	52.36%	17.79%	27.82%	67.59%
HON	54.67	0.76	1.41%	-4.36%	-7.79%	-7.54%	21.22%	-2.15%	-3.31%	27.11%
FDX	93.60	1.89	2.06%	-7.66%	-8.63%	-9.39%	-14.73%	-15.15%	-11.75%	-21.10%
ERJ	44.25	-0.25	-0.56%	-7.74%	-5.53%	-7.81%	8.51%	7.74%	-5.17%	4.76%

Table 5: Senior consumer discretionary equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
NKE	63.75	0.87	1.38%	1.11%	0.71%	-0.14%	30.55%	17.99%	16.29%	31.42%
EBAY	31.94	0.35	1.11%	-0.59%	-1.42%	-9.39%	5.87%	-6.61%	-2.86%	-5.70%
WHR	77.88	1.85	2.43%	-0.60%	5.44%	-7.23%	-8.01%	-19.68%	-30.79%	-9.46%
TM	109.40	1.32	1.22%	-0.98%	0.38%	3.45%	-19.14%	-5.13%	-9.12%	-8.60%
DIS	31.84	0.34	1.08%	-1.73%	-5.32%	-7.58%	-6.90%	-3.98%	-12.72%	-3.49%
SBUX	23.07	0.26	1.14%	-4.27%	-1.41%	-11.85%	-34.55%	-16.17%	-20.15%	-36.59%
CCL	42.73	0.39	0.92%	-4.41%	-4.60%	-9.91%	-16.13%	-5.34%	-14.08%	-15.52%
JCP	41.30	1.23	3.07%	-6.84%	-17.84%	-25.36%	-47.09%	-36.02%	-47.58%	-49.14%
BC	19.26	0.33	1.74%	-9.19%	-10.13%	-4.65%	-39.66%	-23.96%	-44.21%	-41.78%

Table 6: Senior consumer staples equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
PEP	75.51	0.47	0.63%	2.62%	2.73%	4.90%	20.39%	11.19%	9.93%	20.74%
PG	72.86	0.60	0.83%	1.43%	2.85%	2.12%	12.89%	12.02%	15.47%	14.49%
MO	72.97	0.56	0.77%	0.97%	0.34%	0.98%	12.40%	6.32%	2.21%	15.59%
BUD	50.19	0.95	1.93%	0.76%	-0.57%	-3.98%	1.97%	4.56%	-2.26%	7.89%
KO	62.30	0.05	0.08%	0.56%	1.35%	1.63%	28.24%	15.41%	21.37%	32.27%
DEO	89.32	1.33	1.51%	0.44%	-2.24%	-1.24%	12.31%	9.23%	4.60%	17.05%
WAG	39.73	0.33	0.84%	0.35%	1.79%	-0.63%	-13.76%	-11.34%	-11.10%	-3.19%
WMT	45.73	0.87	1.94%	-1.02%	4.84%	4.22%	-3.83%	5.93%	-1.30%	-4.79%
ABV	69.09	0.71	1.04%	-6.03%	-8.79%	-10.68%	40.71%	6.82%	3.57%	48.84%
WFMI	40.75	-0.68	-1.64%	-11.03%	-11.24%	-14.41%	-10.40%	-5.98%	0.94%	-17.41%

Table 7: Senior healthcare equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
NVS	55.98	3.49	6.65%	6.04%	6.28%	8.32%	-3.72%	6.51%	0.23%	-4.55%
GSK	50.79	2.92	6.10%	3.06%	-0.22%	0.08%	-5.61%	-1.53%	-4.74%	-1.47%
UNH	54.07	0.66	1.24%	1.98%	7.52%	11.42%	2.85%	11.21%	0.26%	16.13%
BMY	28.08	0.62	2.26%	1.19%	-2.26%	-4.36%	6.44%	-3.17%	-6.40%	13.55%
DNA	74.82	0.66	0.89%	0.39%	-0.70%	0.19%	-8.53%	2.05%	-3.66%	-7.48%
BMET	45.99	0.06	0.13%	0.24%	0.31%	0.48%	10.90%	1.05%	8.47%	41.68%
JNJ	66.88	-0.26	-0.39%	0.00%	3.55%	4.58%	0.72%	7.68%	4.81%	0.16%
AET	54.14	0.34	0.63%	-1.29%	-0.88%	-3.30%	26.26%	9.57%	4.32%	31.06%
PFE	22.98	0.63	2.82%	-1.33%	-0.56%	-5.39%	-12.59%	-6.66%	-15.95%	-15.20%
AMGN	53.76	0.92	1.74%	-1.88%	-4.05%	-6.19%	-21.40%	6.99%	-1.79%	-26.03%

Table 8: Senior financial company equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
DB	124.35	2.45	2.01%	1.07%	-0.02%	0.04%	-8.12%	0.33%	-21.17%	-6.17%
HBC	84.74	2.12	2.57%	-2.90%	-5.83%	-8.49%	-8.85%	-5.99%	-8.61%	-10.21%
LEH	60.86	3.11	5.39%	-3.35%	8.47%	6.92%	-22.60%	4.61%	-17.91%	-21.75%
JPM	41.95	1.27	3.12%	-3.63%	-1.55%	-8.90%	-12.73%	-8.15%	-19.31%	-11.85%
GS	216.48	6.98	3.33%	-4.64%	3.12%	-4.49%	7.85%	21.96%	-5.28%	7.01%
CS	57.17	0.58	1.02%	-5.11%	-6.23%	-11.23%	-18.46%	-13.64%	-24.46%	-13.76%
UBS	45.24	1.56	3.57%	-5.26%	-3.89%	-14.56%	-26.31%	-13.83%	-29.33%	-26.37%
MS	49.89	1.38	2.84%	-6.35%	-7.06%	-19.53%	-38.88%	-22.42%	-41.82%	-37.01%
MER	53.54	1.73	3.34%	-6.56%	-0.46%	-12.09%	-42.81%	-29.45%	-42.93%	-41.95%
C	31.70	0.97	3.16%	-8.33%	-3.65%	-23.11%	-42.62%	-34.44%	-42.37%	-37.56%

Table 9: Senior technology equities

Sorted by 1-Week Price Performance

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
ADBE	41.91	0.07	0.17%	2.67%	-6.93%	-11.21%	4.98%	3.23%	-3.05%	0.24%
SAP	51.60	0.12	0.23%	1.90%	-1.55%	-3.30%	-3.01%	-1.30%	8.02%	-2.18%
ORCL	20.31	0.10	0.49%	-0.54%	-0.20%	-3.29%	15.99%	4.85%	6.00%	3.36%
QCOM	40.53	0.07	0.17%	-0.69%	1.94%	-0.64%	8.20%	7.05%	-9.61%	8.51%
INTC	25.07	0.44	1.79%	-1.80%	-3.32%	-3.17%	23.19%	3.47%	10.59%	15.37%
CTSH	30.46	0.35	1.16%	-2.03%	-3.52%	-22.30%	-21.66%	-18.29%	-20.01%	-24.10%
CSCO	28.69	0.44	1.56%	-2.08%	-3.17%	-7.99%	3.42%	-5.22%	10.47%	6.61%
SNDK	36.11	-0.08	-0.22%	-3.11%	-7.53%	-10.00%	-13.45%	-32.02%	-16.41%	-24.01%
ADSK	45.79	0.56	1.24%	-3.52%	-3.32%	-3.09%	12.89%	1.67%	0.62%	10.50%
INFY	39.10	0.44	1.14%	-5.19%	-7.74%	-19.51%	-29.95%	-14.98%	-20.91%	-27.77%

Table 10: Yahoo Finance U.S. Treasury Debt, Municipal and Corporate Bond Yields

US Treasury Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
3 Month	3.10	2.97	3.29	3.68
6 Month	3.23	3.16	3.42	3.82
2 Year	3.07	2.99	3.33	3.73
3 Year	3.01	2.89	3.24	3.73
5 Year	3.41	3.34	3.69	3.98
10 Year	4.00	4.01	4.16	4.34
30 Year	4.42	4.46	4.53	4.64

Municipal Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	3.22	3.23	3.30	3.34
2yr AAA	3.31	3.27	3.29	3.35
2yr A	3.43	3.39	3.42	3.37
5yr AAA	3.53	3.38	3.43	3.44
5yr AA	3.45	3.31	3.46	3.40
5yr A	3.64	3.49	3.53	3.60
10yr AAA	3.76	3.80	3.82	3.76
10yr AA	3.82	3.68	3.77	3.68
10yr A	3.99	4.02	4.05	3.89
20yr AAA	4.23	4.44	4.48	4.38
20yr AA	4.79	4.59	4.67	4.57
20yr A	4.77	4.78	5.13	4.39

Corporate Bonds

Maturity	Yield	Yesterday	Last Week	Last Month
2yr AA	4.37	4.15	4.38	4.51
2yr A	4.49	4.28	4.59	4.68
5yr AAA	4.54	4.53	4.69	4.76
5yr AA	4.78	4.72	4.99	4.96
5yr A	4.63	4.55	4.83	4.93
10yr AAA	5.24	5.13	5.21	5.27
10yr AA	5.46	5.54	5.66	5.59
10yr A	5.66	5.54	5.68	5.57
20yr AAA	5.72	5.54	5.58	5.65
20yr AA	5.91	5.73	5.79	5.83
20yr A	6.17	6.00	6.04	5.99

Table 11: Interest-sensitive securities

Sorted by 1-Week Price Performance.

Symbol	Close	1Day Change	1Day %Change	1W %Change	2W %Change	4W %Change	YTD %Change	3M %Change	6M %Change	12M %Change
TIP	106.69	-0.07	-0.07%	1.70%	2.15%	3.14%	7.52%	6.00%	7.20%	6.53%
TLT	93.73	0.28	0.30%	1.57%	3.50%	3.33%	5.