WFC

WFC update

Hamilton

wfc oct 15 2015

Exactly a month ago we decided that there was no triangle in the making, see previous blogs. Today we are not that sure as a triangle as shown would fit very well. It would target the $45 level from where the diagonal started and would form a nice initial 5 waves down. We have drawn the triangle rather bluntly, assuming for the moment that wave d is not yet complete. Under  this assumption there is still some time left before the 5th wave drops the stock to about $45. But if one assumes that d is already complete and we are polishing off e, the whole thing could drop any moment now. Both JP Morgan and Goldman had so so earnings and this may become contagious. A sell here for a buy back at $45 or so.

WFC update

Hamilton

wfc sept 16 2015

We nailed the top on this one rather accurately, see our July blog. At the time this looked like a diagonal but the 30 year plus chart was even more clear. Here again we do not think that the first wave is complete, nor do we believe there is a triangle in the more detailed part. It could go a few dollars higher but then the whole thing should continue down to about $45 for starters. For your convenience we repeat the July charts;

wfc jun 8 2015wfc july 14 2015

JPM and WFC

Hamilton

We recently looked at JPM and pointed out the two possibilities in the count repeated here;

jpm july 14 2015

Quite clearly there is a triangle here, either as a b in a B-wave or, if drawn much larger (not shown) as a wave 4 in the entire sequence. The “channel” is hard to determine but must run something like shown by the light grey lines. Presently we are outside and above that channel. Also we are beyond the apex in terms of time and both the a and c legs of the B-wave are equal in magnitude if not as vectors. Wells Fargo, now the largest bank in the US is at a similar though different extreme point;

wfc july 14 2015

Both counts could apply to WFC as well, however, as it lacks the triangle right in the middle the B-wave is a little more tentative. The channel, on the other hand , is more pronounced and again we are above it. Both look well done to me and, granted that does not mean that these stocks have to turn on a dime the next few days, they are sells nevertheless.

Banks are reporting again this week and considering we have had 26 such occasions since the lows they usually pass uneventfully. This time could be different. Remember also that both these stocks have added almost as much or more value in the past four years or so than over their entire existence prior to that.

WFC, Wells Fargo update

Hamilton

wfc jun 8 2015

Back on the 5th of Dec. last year we suggested to sell this stock if not immediately then at the $58 price target that I thought was the max. leeway this stock had given the upper trend-line. The high , so far was $57.22 and neither the RSI or MACD appear to confirm this. The wedge with it’s overlaps is clear as a bell. First target, as always, is at the base of the wedge at just under $46, or down roughly 20%. It took  about six months to add the last $3 but it may only take 2 months to subtract the next $11. Time to get out.