NEW BULLISH Plays
Wells Fargo & Co - WFC - close: 40.75 change: +0.23
Stop Loss: 39.90
Current Gain/Loss: unopened
Entry on May -- at $--.--
Listed on May 29, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 20.5 million
New Positions: Yes, see below
Why We Like It:
The broader market looks tired but some of the banking stocks actually look poised to break out higher. There is growing talk about how rising interest rates will make banks even more profitable so the rising yield on the ten-year U.S. bond is being translated as bullish for the banks. Actually, it's the growing spread between short-term and long-term interest rates that will make banks more profitable.
Currently, WFC is sitting near all-time, record closing highs. The stock is also hovering just below short-term resistance near $41.00. The May 22nd high was $41.10. I am suggesting a trigger to open small bullish positions at $41.25. If triggered our multi-week target is $44.50.
Trigger @ 41.25 *Small Positions*
Suggested Position: buy WFC stock @ (trigger)