Stock Selection Information
WFC had an earnings release today. Wells Fargo (WFC): Q1 EPS of $0.92 beats by $0.03. Revenue of $21.3B misses by $0.29B. (PR).
More on Wells Fargo (WFC) Q1 earnings: Loan growth of 4.3% Y/Y. Deposit growth of 6.3%. Net interest margin of 3.48%, down 8 bps Q/Q, down 43 bps from last year. $200M (about $0.04 of EPS) released from credit loss reserves. Bank expects continued releases throughout 2013. Mortgage banking income of $2.8B, off 8.9% Y/Y. Tier 1 capital ratio of 10.38%. Book value/share of $28.27. Shares -1.4% premarket. (PR)
Watch List Reason - Before
More on Wells Fargo (WFC) Q1 earnings: Loan growth of 4.3% Y/Y. Deposit growth of 6.3%. Net interest margin of 3.48%, down 8 bps Q/Q, down 43 bps from last year. $200M (about $0.04 of EPS) released from credit loss reserves. Bank expects continued releases throughout 2013. Mortgage banking income of $2.8B, off 8.9% Y/Y. Tier 1 capital ratio of 10.38%. Book value/share of $28.27. Shares -1.4% premarket. (PR)
Pre-Market Volume - 6%
Trading Plan - Inflection @ 36.75. Could´ve played on both sides. If held below 36.74 short it, if holds above, buy it.
Management
Entry Setup used: Open Range @ support failled to break down, consolidation @ support
Trading Comments
A lot of green prints in the stock as it was falling down, meaning buyers were paying the offers when the stock is below a support. This usually means a lot of interest in the stock.
If the stock were to fall and sellers were in control, one would expect a lot of red prints because sellers would be hitting the bids. This is tape reading being put to use.
If the stock were to fall and sellers were in control, one would expect a lot of red prints because sellers would be hitting the bids. This is tape reading being put to use.
Evaluation
I traded the stock really well I think. After that first momentum trade, I could´ve bought it again as it was making newer highs, but there was a close resistance and the risk reward was not so god. Must consider this in other stocks when momentum works. Keep it mind that momentum will work untils it stops working.
Second trade I use the "Easy way in" building into a position.
It is important to know that the stock was trading inside it´s daily range formed at the open, meaning I should have a modest target.
Second trade I use the "Easy way in" building into a position.
It is important to know that the stock was trading inside it´s daily range formed at the open, meaning I should have a modest target.
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