Wells Fargo (WFC)....Traders should consider cover shorts.


In our "Morning Comment" on Friday morning, we highlighted WFC...and turned bearish on the stock. Since then it has fallen over 8%.

That's a very big move over just three trading days, so any short-term traders who might have gotten short on our call should consider covering down at these levels.

Another reason to consider covering is that its daily RSI chart falling to 18.5, That's the same level it saw in late December of 2018...just before it began a strong bounce of 14% over the next month.



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THE WEEKLY TOP 10


Every weekend, we write a piece we call "The Weekly Top 10". However, this is NOT a regurgitation of Barron's or the weekend edition of the WSJ. Instead, we try to cover the issues most people are not focusing ...

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Are the Biotech Stocks Due For Another Leg Higher?


Back in late October, we turned much more bullish on the biotech sector when the IBB biotech ETF broke back above its summer highs. The IBB rallied 16% over the next two months…outperforming the S&P 500 (which has rallied 7 ...

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Does an Overbought S&P 500 Index Matter???


We have stated several times in recent days that the broad stock market is overbought. However, we have not shown WHY we believe this to be true. Our apologies. Here is a chart that supports our case:

The S&P 500 ...

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Mornin Comment: Much more near-term rally in stocks doubtful....Gold....Tesla.


  • Yesterday’s bounce was quite understandable, but a lot of upside follow-through near-term is doubtful.
  • The situation with Iran has been pushed to the sidelines…which is obviously positive, but it’s far from over.
  • Besides, the stock market is overbought…and earning season ...
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Morning Comment: Investors Should Still Keep Some Powder Dry.


  • No casualties means President Trump will not escalate the situation in Iraq/Iran further at this time.
  • However, the bounce could/should be limited…because the decline was very muted.
  • There are still a lot of unanswered questions…with earnings guidance & ...
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Morning Comment: HD's Chart Now Looking Dicey


In our full edition of the "Morning Comment," we touched on the following subjects:


  • Most people liked yesterday’s midday bounce. We did not. It shows there’s too much complacency out there.
  • The market is overbought after its big 2019 & ...
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Morning Comment: Iran & North Korea are Connected.


  • Iran is one of the reasons the U.S. does not want North Korea to become a nuclear power.
  • Since N. Korea is connected to the Iran issue, so is China.
  • These new uncertainties should keep oil elevated for longer ...
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Morning Comment: Update on the FAANG Charts


Morning Comment: Update on the FAANG charts.


  • Yesterday’s decline was meaningless. Today’s action should be equally meaningless.
  • The FAANGs continued to be leaders early in 2019, but lost that status in the spring.
  • However, those FAANG stocks have regained A ...
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U.S. 10yr Yield Testing Key Resistance Again


We’ve heard some very different predictions for the direction of interest rates over the past few days. Just yesterday, Citigroup said that they expect the yield on the 10yr note to decline down to the 1.25% level next year…while ...

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Morning Comment: Be Careful on TSLA & MSFT at These Levels.


  • Year end rally in the broad stock market looks like it will hold.
  • However, TLSA is overbought and reaching a level that has been followed by severe reversals in the past...so be careful.
  • MSFT is at a huge premium ...
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Boeing (BA): Needs to Hold $320 (& $300 is the


We do not cover Boeing (BA), but it’s pretty amazing how their CEO has been able to keep his job. As one expert said this morning that he must have known for a while now that they 737 Max was ...

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