Today's Outrage: Watch for the Citigroup Share Smackdown

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NEW YORK ( TheStreet) -- If recent history is any guide, Citigroup ( C) shares are in for a smackdown.

The stock may continue to see a little more upside after two days of gains, and Citi's announcement that it sold its Nikko Asset Management unit in Japan for about $1.3 billion may offer more support today.

But Citi stock has a way of resetting after every gain and has pretty much been unable to break out of a trading range between $3 and $4.

Don't believe me? Play the Citi Smackdown game (based on actual price history and news events) and you'll get the picture.

The Citigroup Smackdown!

Unfortunately for shareholders, there are still too many issues ahead that could be troublesome for the market.

Having completed the conversion of preferred stock (including the government's holdings) for common stock, the arbitrage trading is now over. But the bank is seeking approval to issue 60 billion more shares if needed down the road. And many business units, in particular consumer loans, are still struggling.

Among the big banks, Citi remains the dog, with the stock down 52% for 2009.

By contrast, Goldman Sachs ( GS) is up 85% this year, Morgan Stanley ( MS) notched a 75% gain and JPMorgan Chase ( JPM) is closing in on a 20% increase.

Bank of America ( BAC), which right or wrong is frequently lumped into the same category as Citi as a TARP poster child, is only down 4% this year.

Citi shareholders have my sympathy. I don't like to see a stock get stuck in the tar like this.

I'd like to say something encouraging like "there's no where to go but up," but the truth is that Citi shares have proven that isn't true.

The stock may very well go down a few more times before a rally sticks.

--Written by Glenn Hall in New York.
Glenn Hall is the New York-based editor in chief of TheStreet.com. Previously, he served as deputy editor and chief innovation officer at The Orange County Register and as a news manager at Bloomberg News in Frankfurt, Amsterdam and Washington, D.C. As a reporter, he covered business and financial markets, worked in both print and television in the U.S. and Europe, and conducted in-depth investigative coverage at The Journal-Gazette in Fort Wayne, Ind. His work also has been published in a variety of newspapers including The Wall Street Journal, The New York Times and International Herald Tribune. Hall received a bachelor's degree in journalism and political science from The Ohio State University and a certificate in project and program management from Boston University.