The stock market plummeted yesterday and then rocketed back today. Financial stocks, in particular, led the charge both days. Financial shares dropped 10-20% yesterday, only to see 10-30% gains today.

Talks of need for more government money and bailouts is what rocked the financial shares. Many were worried the banks were in even more worse shape than people thought and that the government would end up wiping out common stock shareholders ala AIG/Fannie Mae type bailouts. This would particularly be the case for Citigroup and perhaps Bank Of America.

Today, as these fears subsided, shares came back. Then, on news of insider buying, such as Jamie Dimon’s 500k shares of common stock purchase of JP Morgan, financials came roaring back.

It seems like financials, particularly BOA and Citigroup are at the tipping point. Citigroup is at $3.67 a share, even after today’s surge. This is down from $50 a share from just a few years ago. It’s hard to see Citigroup staying below $5 a share for an extended period of time. Either this stock will come roaring back or common stock shareholders will be wiped out. I don’t see it stagnating between $3-$6 for long.