Wfc is reacting to interest rates right now
It’s a bit more complicated but basically interest rate hikes are good for banks and bad for bonds right now bonds are getting a bounce so banks are getting a dip. I think this is a temporary ordeal from what I’ve been reasearching and also from @TheHouse dd on stagflation as well. I have a historic resistance on the 10 year bond prices charted I’d expect a bounce around there I don’t see a fundamental shift for the bond market rally.
So did a call trigger today for WFC or are the indicator stars not aligned quite yet?
No script indicator on this rn but there wasnt last time either. WFC is close to the bottom of Channel, could bounce here or come down a little bit more. bank earnings are all coming up. Closer view below:
My understanding is that rising rates are both good and bad for banks.
Banks make more money per mortgage or loan, but fewer people will be taking on mortgages or loans.
Like selling fewer products for more $ versus selling lots of product for less $. Not sure which will win out in the end.
For Bank of America BAC we Printed a Turquoise R and a green 8 so VERY bank Bullish
My positions:
BAC 4/22 $40 Call
XLF 4/22 $38.5 Call
Right Now BAC is lagging behind WFC, BAC may be the better bank play rn.
Looks like there is no play here until bank earnings tomorrow and Thursday
Don’t go anywhere near this until we have clarity on bank earnings.
What’s your insight on bank after the ER week?
Based on history, WFC will most likely declare dividend date next Tuesday. Would that be a catalyst for the reversal?
I think you would be fighting the greater market trend. This coming week with mega-tech earnings is going to make the market move dramatically in one way or the other.
