Strength Exists and My New 'TELL' – Wells Fargo (WFC)

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  • on July 18th, 2008

If you read this blog regularly, you know I follow market ‘TELLS’. Before the recent meltdown, I was using Federal Express and Fannie Mae’s January lows. When both broke – eg. Fannie below $19, I had a good idea we were going much lower. We did.

I don’t want to own banks (except mine), though I traded Visa, American Express and Goldman Sachs the last week. With Wells Fargo’s earnings being treated with a ‘Glass is Half Full’ attitude, I have a basis for watching the financial sector through one stock and that’s Wells Fargo (WFC). As long as I see it above the gap up price of $24/share, I will treat the market as calmed down and add to my stronger positions and even consider some new breakouts. People make this stuff harder than it is because they want to catch bottoms and tops.

A few positions I have added to the last week include:

ELP
CCC
EURX
CRM
PPO
NTDOY
WCN

Some into recent weakness (NTDOY, CCC and CRM), some into their all-time high strength.

Still extremely light at about 30 percent invested. No rush to get invested. I will let the market dictate that.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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