Wells Fargo 'Checks'
Yesterday’s session may have been the ‘gut check’ referenced in Tuesday’s update located below and here.
Big Charts lists the short interest at less than one percent. So, we’ll see how this move works out.
Remember: All data except for the actual price, is considered false
Wells Fargo Short Squeeze
Appearances can change rapidly.
Now that we have everyone lined up on the wrong side of Wells Fargo, it’s time to squeeze ‘em out.
There was unusual volume in WFC over the past two weeks and now, we may know what it was all about.
To get an idea of what a short squeeze looks like, reference this article. That was way back when I was wasting my time with SeekingAlpha. J
Of course, as that post states, the Goodrich Petroleum research never made it to press; I was informed by the editor that such analysis (i.e. the truth) was ‘not appropriate’ for their readers. Judge for yourself whether or not participating in a sharp, quick and profitable upward squeeze would be ‘appropriate’.
After the squeeze was over and eighteen months later, Goodrich Petroleum declared bankruptcy.
Let’s keep that in mind as we move on to analyze WFC. Greg Hunter stated several years ago, that WFC was essentially insolvent. Why it has not gone to zero at this point, is unknown. Maybe we’re waiting for DB (Deutsche Bank) to go first.
Should WFC be traded to the upside? Well, Goodrich was.
If WFC begins to move higher form here and continues on for a few days, we’ll be looking for a particular set up that David Weis in his video calls a ‘gut check’; a condition where price action suddenly, sharply reverses to test the support level.
Wells Fargo (WFC), set to move higher, pre-market
Price action penetrated established support on Wednesday and then re-tested that level Thursday. WFC is now in spring position
Pre-market trading in WFC is confirming the spring with trading up approx: +0.76, or +1.59%.
Note the heavy volume over the past ten trading days. Some large entity may be taking positions; either for the up-side or down
We’ll see how it behaves as (or if) it moves higher.
From our perspective, we’re certainly not going to trade WFC to the upside. The objective here is to identify a potential move (spring in progress) and then monitor for downside opportunities.