One great trend I have noticed through the years is that of pre long holiday weekends. The trend is we easily move high on low volume as only the small players are in the market and then when we get back from the holidays the big money gap us down and reverse the gains. Will this happen monday and tuesday I think so.
Today I was hoping for 853/854 area and we went to 856, nice call indeed but I believe we are at the top of the range +/-8 points.
Support sunday night on the futures if we gap down should be 846 and the resistance here should be 861/862 area. Next week should be fun, much fun and I expect up to move up a little move before we head down into the later days of the month.
Have a restful and peaceful weekend.
MARKETJEDI
Thursday, April 9, 2009
Watching paint dry
Well again another watching paint dry day. The market gapped up on the Wells Fargo news and then nothing, no volume no follow through, whatelse can you say.
This is one very slow slow slow day
This is one very slow slow slow day
Food for thought-
It is a well engineered, government supported manipulation that Well Fargo , unfortunately, reported 0.55, a fake number, still 10 cents below expectation.
But the FASB rule change allows them to report it like this. They can state a false net income number, as long as they disclose the writeoffs in brackets down below.
The stock is under tremendous distribution since the open, despite the fact that this is a pre-holiday trading day.
WFC, considering a PE ratio of 16 which is over the top given the current conditions, is worth only $8 today. However the market doesn't only price today's conditions but 6+ months future.
So WFC today is worth $2-$3 like all other major banks you know of.
Here is the thing you should be careful. Conventional wisdom today changed. Masses now think that they will get the same reaction after all other bank earnings. There is no free lunch in this business. If the market unloads WFC after the news, which is the current case, this mind-set will be a trap to the broke-house. Because these banks may not see these prices for the rest of their business lifes.
These are not my words
But the FASB rule change allows them to report it like this. They can state a false net income number, as long as they disclose the writeoffs in brackets down below.
The stock is under tremendous distribution since the open, despite the fact that this is a pre-holiday trading day.
WFC, considering a PE ratio of 16 which is over the top given the current conditions, is worth only $8 today. However the market doesn't only price today's conditions but 6+ months future.
So WFC today is worth $2-$3 like all other major banks you know of.
Here is the thing you should be careful. Conventional wisdom today changed. Masses now think that they will get the same reaction after all other bank earnings. There is no free lunch in this business. If the market unloads WFC after the news, which is the current case, this mind-set will be a trap to the broke-house. Because these banks may not see these prices for the rest of their business lifes.
These are not my words
Number to watch
Watch that 854 area on the S&P it is still in play and actually might get hit today.
Keep you posted later on
Keep you posted later on
WFC UP
WFC up on news that the Wachovia merger is working out well. My opinion it is the mark to market rules in action and nothing more.
Thursday
Expect a very light day of trading today and narrow range. Yesterday I had my doctor's appointment and got some medication so I hope I am in a better mood next week.
There is no reason to trade today a day before holiday as most traders have already taken off.
I will have my system on looking but I doubt it will be an eventful day.
Have a great long weekend
There is no reason to trade today a day before holiday as most traders have already taken off.
I will have my system on looking but I doubt it will be an eventful day.
Have a great long weekend
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