Business Insider reported that WFC won't be partaking in nearly as much of the $2 trillion stimulus from Trump as expected because the Fed capped WFC's lending limit to small businesses at $10B from their 2018 debacle. Sounds big enough to suppress stock prices so I think continue to chop. Should the Fed reverse positions, this could easy retest the kumo. This play would be a scalp if anything.
Comment:
Fed allows WFC to expand beyond the $10 billion limit, but can only loan to struggling businesses and all earnings/fees must go to the Treasury or donated to a charity. This will be active as long as the Fed has the credit dealing facilities. Positive sentiment, but not necessarily' bullish.
Comment:
If we don't dump on Monday I'm out because even if WFC can't participate in the profits from the small loans, the market is telling us that they approve of the support the administration is providing to the banks and this could continue running much higher.
Comment:
This is what I was waiting for. WFC has withdrawn NII guidance entirely.
Trade closed: target reached