So the government regulators supposedly have told Wells Fargo (WFC) that the bank need to raise new capital, according to various news sources, and the stock jumps 23%.
I've been long WFC since late March when the stock was $15. Today, as I was watching the stock just keep going up and up, what I felt was not joy but fear. Now what? My head went blank. It has been stomach-churning 5 weeks of holding this stock, even though it dipped below my buy price for only three days (right after I bought it... that was bad). Candlesticks on the daily chart for the past 4 weeks are almost exclusively "hangman" or "hammer", and they looked like they would fall off for no reason at all. So all I could think was SELL. And so I did.
There were actually technical and non-technical reasons why I bought that stock to begin with. Technical: It popped through 50-DMA on daily, and came back down to it on a lower volume. Non-technical: 1) Banks were vilified, shorted heavily. Short side at that point looked too crowded; 2) local WFC branch people were always nice and helpful, unlike local BAC.
So, after I sold, I immediately got the seller's remorse. Too late. Partly to justify my sale, I took a look at the longer-term weekly chart, and I'm pretty happy with my panick decision. While I do think there may be still a momentum left (weekly RSI still barely above 50), the stock just hit weekly 50-MA (daily hitting 200-DMA) and seems to be entering the very jagged overhead from October 2008. It is possible that the stock can clear that and hit the all time high, but the next $8 may be harder to come by than the $8 that I just bagged. So I'll move on, for now.
Closing Time for 2015
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A fox doesn't seem to care if the air dose rate is in several millisieverts
per hour inside the Reactor 2 building around containment vessel.
From TEPCO's ...
8 years ago
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