Wells Fargo 'Profit' - People Have Short Memories

 |  Includes: SMH, WFC
by: Zignals

"Wells Fargo projects record $3 billion 1Q profit" - or have investors forgotten about the $25 billion bailout the bank received? Not that it mattered; markets have taken this as a positive and pushed an early 3% gain. WFC gapped well over resistance and although down from its open is nicely positioned to challenge $21.45 resistance.

Ignoring the 66% of Nasdaq stocks trading above their 50-day MA, which suggests an intermediate top marking a 3-6 month high is imminent (bear market tops typically occur when 60% or more of stocks trade above this average), there is a nice play at work in the semiconductor ETF. The past 4 months of consolidation looks to be history and there should be good demand on any drop below $19.30. Next resistance around $21.10. I've made a whimsical call for a push to resistance with a stop below $19.30.