Here’s your trade on Wells Fargo (WFC) (February 23, 2013)
WFC
I’m Dan Fitzpatrick here at Stock Market Mentor and OptionMarketMentor.com on Saturday, February 23rd. I want to look, real quick here, at Wells Fargo ( $WFC Wells Fargo & Company ). This is the first Free Chart video I’ve done in a while and so I’m just getting back in the saddle. I’m looking at this, and our members over at Option Market Mentor have been on this stock for a while. It’s not too late for you to get on board, that’s what I’m telling you. This has been consolidating for a while. Pretty tight squeeze finally, but you look at when the stock started to consolidate. This gives you kind of a little lesson in valid breakouts versus invalid breakouts. It’s not a rule; it’s a rule of thumb. The longer a base, and this is what this is, it’s a high base, it’s not happening down here, but the longer a based forms the easier it is for the 50 day moving average, which tends to be a really good reference point for a short to intermediate-term move, the easier it is for the 50 day moving average to get over to it. So what we have here is a stock, that if it had broken out here, probably wouldn’t have a whole lot of chance to go a lot higher because the move has already been made. So there’s kind of a lot of profit-taking potential in here, even here, even here. Gradually those folks that bought here are selling here but then finally the stock comes up far enough over to where, really, everybody that was trading, let me get a box around here, everybody that was trading over here, I mean, they’re no longer relevant in this stock. I mean even this high back here, where you could say, “Well yeah, this stock doesn’t have much potential, I mean look these are these two highs.” Sure, that was many months ago and there’s been much trading going on since the stock hit those highs. So there’s not likely to be a lot of emotional or financial commitment to these prices, such that somebody who bought here at $35.00 or $36.00 is waiting to sell his stock at $35.00 or $36.00. I think those guys are long gone. So instead what you want to be doing is you want to be looking at the financials and see how they’re generally doing. The XLF ( $XLF Financial Select Sector SPDR (ETF) ), we’re not going to get into that here, but the XLF ( $XLF Financial Select Sector SPDR (ETF) ) is doing fine. All the financial stocks are doing pretty well. Wells Fargo ( $WFC Wells Fargo & Company ) has set itself up to make a nice little pop on any kind of market strength. And if you look at the market I think we’re going to see some market strength. So what I want you to do is, consider taking some of this stock right now. We’ll follow this volatility squeeze all the way through phase one, and then on a pull back to phase two, and then hopefully a bounce into phase three; and Wells Fargo’s ( $WFC Wells Fargo & Company ) off to the races. So okay that’s it for this video. Members I got a lot of stocks for you and that’s either a function of me being particularly astute this weekend or more likely the fact that I’ve been out of the market, basically for the past several days, and so I’m just coming back and seeing a lot of things that I wouldn’t have otherwise seen and I’m not really filtering them, I’m just going to tell you what I think. So there are a lot of stocks under coverage this weekend and I know we’re going to find some good trades. Also, look, if you’re not a member of Stock Market Mentor I’m asking you to consider becoming one, at least for a 30 day trial. There are a lot of good things going on over there. I’m going to be spending quite a bit of time in the forum over the next week, two, three, four, five, six, seven you name it. So we got a lot of nice things going on over there and I hope that you will be a part of that. And guess what? Its’ risk free. Free Chart