The Wells Fargo Two Step
Have you seen this? I have never taken the financial media seriously, and have tons of examples of lameness to reinforce this bias…..BUT This one takes the cake!
Here is what happened….
Dick Bove of Rochdale Securities was interviewed on CNBC Wed morning following Wells Fargo’s (NYSE:WFC) earnings. The interview is posted below…
Some choice quotes from the interview…
Wells Fargo “has its loan losses under control” and “should be able to grow revenues by increasing loan volumes”.
Wells Fargo “should do well in the market today and lift all financial stocks.” And Wells Fargo is a “standout” .
All this would be business as usual but for the fact that later that day, (Just before the close!) Mr Bove issued a “shock” SELL rating on Wells Fargo…
(Downgrading the stock from Neutral.)
I could go on as many have about what a load of BS this is, but the important bit that we as traders need to take from this is that the opinions of the talking heads are always TOTALLY SUSPECT! You must let the market and its real world order flow dictate your trading if you are to succeed.
Be your own man or woman, figure out what your bias is and what the reward potential is…THEN TRADE IT! Let the yappers make fools of themselves without wasting your time.
