Wells Fargo Makes Billions
Research for Online Investors

by John Dalt

4/09/09

This is the last trading day of the week. The market is closed tomorrow for Good Friday. Please remember, to quote OH! Bama, “The U.S. is not a Christian nation.”

The bear market rally got a shot from Wells Fargo; they forecast earnings of $3 billion for the first quarter before the market opened this morning. They were just so proud they could not wait until they actually report earnings.

On the surface, it is strange that this was released. The suspicious side of me questions, why? Nothing would help the banks look better than increased share prices. They could also sell stock if they could get their prices up, which will improve their balance sheets. It just seems suspicious. What goes up goes down.

The Public-Private Investment Program (PPIP) program has spawned a new acronym GIGO (Garbage In, Garbage Out). Gallows humor has a certain attraction to it. We all seem to gawk at a car wreck. The "stress" tests are continuing by the Treasury department. Geithner was to brief OH! Bama this week on the status of the investigation. No details have been released on the ability of the 20 largest banks to handle additional difficulties. The delay of results of these “stress” tests is bearish to me, but the market seems to think that all is well. We have not heard any information to support or conflict with that perception.

A friend sent a link, with a note that everyone needed to see this video. It is supposed to be a professor in Kuwait, a country we saved from Iraq in 1991. Amazing how people forget who saved their neck from the noose. Add this country to the long list of the thankless.

The markets opened up this morning and proceeded to gain throughout the day. The SP500 closed at 856, its high for the day! I kept expecting to see the selloff, it never occurred. This rise appears to be taking on the characteristics of a forest fire. It is creating its own weather system!

P rofessor David Schaefer of Holy Cross wrote a good editorial in the Wall Street Journal concerning arms control and aggression. Weakness never seems to keep the bullies away, on the playground or world.

We initiated another great trade today in the SwingTrader. We have two ways to make 15% in less than two months. Kind of like heads I win, tails I do not lose.

Since the market is closed tomorrow, I will see you on Monday, ready to take on the villainous traders on Wall Street.

Our last closed trade from the Swing Trader Service: 

PO T—held 16 days for gain of 15.3%
That makes 11 closed trades in the last 40 days with avg. gains of 9.5%....NO losers. 

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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