Within 12 days from my target and I'm right. I have had fun listening to skeptics and people telling me not to ask the "why" question. Damn, I thought mindless trading was for smart people? Wait, I use my brain and ask why, and that's why I make cash. I told you I love odds that are in my favor 97.5% of the time. Maybe I should add the odds were in my favor by 99.99% because the fundamentals told me it wasn't worth as much and the technical chart indicators told me it was over bought and the trend was weakening. With the odds being so low for it to make any continuation no wonder an analyst down graded this stock! It's no wonder people started shorting it. Didn't I tell you that this company is not making as much as it did in 05 and 06? Did I not warn you that even if it did out perform everybody was just pumping the anticipation and dumping the news. Amateurs... they think they own the world. Here's my favorite Jim Cramer quote "THEY KNOW NOTHING".
Here's my rule of thumb never apply technical analysis and over shooting a trends strength without looking at the fundamentals. That's like a poker player not looking at his cards. Wall Street is not fooled by a trend. 75% of Wall Street is managed by fund manager that are number crunching fundamentalists. Stocks will only have enough demand until fundamentals eventually make no damn sense. A channel will have pop outs but they eventually subside into the natural flow of fundamentals. Never trade without looking at the numbers. It's just to damn foolish. I may be an ass but I have proven my point 10 days from when I opened this thread. I hate seeing people on these forums ignore me and get their ass kicked for not listening. Well now you know, the difference between an amateur and a professional. Unlike most traders I can actually back the claims I make with confidence because I do very thorough research, and I can get all the grimey money making details within 30 minutes of research. Being thorough does not mean time consuming.
If you want, to play another game of who can guess the market's better or talk to me about how P/E ratio's don't matter that is fine, but I'll still kick your sorry ass. News flash, this isn't a bull market, it's a recovery and everyone isn't as gullible. Every Bull on Wall Street wants to run away at the sight of profits. Every Bull on Wall Street is even more cautious because of the very internet bubble and the recent credit bubble. Some older technical traders will actually think people will buy hype, but it's too soon. People don't buy hype till the end of an economic boom. Next time, do your research before you start hammering 40-50 PE multiples are OK, because in this market they aren't. I use psychology, technical analysis, fundamentals, and economics to my own advantage. I have a strong wall and an even stronger ax.
WFC is still above 30 as of today. What happened to your analysis? I have no opinion about it, but it is interesting to read what people think, particularly when they thinking is wrong. You started at 29, writing it will not go above 30. Then after it went to above 31, you mentioned that once the earnings are released, it will go to the bottom. Today it is back above 30 one day after earnings. What is your current opinion?
very interesting, good thing I had a stop in place. But considering I shorted at 31.40 and closed at 29.00. I earned 8% in 5 days. Now, I never said it would not go back up. All I said was the inevitable it will go down. I will be their to short. Maybe you shouldn't refer to the first post alone. But rather look at the different short signals I gave throughout this thread. Yeah i closed with a .50 lost on my first trade just to earn 2.40 on my second one. I earned 5 times more than what I loss on my first trade. If your a professional trader you'd at least acknowledge that circumstance's change and that a traders ability is tested in the progression of their analysis as events unfold not what they see at the outset. With the constant change in environment it's no wonder I have to constantly change my strategies and set ups. Unless if it hasn't dawned on you. This stock is volatile. What I said in my post is entirely wrong for right now but it won't be soon. We'll need more time for the Bulls to break down. But, they will fall down one way or another. The psychology isn't right for people to buy into 50 P/E multiples. Those type of things tend to happen at a peak of an economic growth cycle not at the outset of a recovery. The reason why this market is so volatile: It's a battle between realists who have and still have a good reason to short, and performance chasing idiots who need to go long for clients in their mutual or hedge funds. It's a whipsaw right now between 29-31 not a bad channel to trade. Just not to excited to be a bull because they are standing on very thin ice. I'd rather stand on the stronger side. The one based on logic and not emotion. I have a short bias in this stock and I will constantly pick tops where it breaks an upper bollinger deviation.