WFC had earnings today. Quarterly profit was up 86% and the results significantly bested JPM. I saw at least one raised price target to $64.
WFC was strong on the day, but was pulling back some. It had consolidated above VWAP for about 20 minute, which is just about the minimum length to get multiple different timeframe traders involved. I was long a starter at the bottom of the consolidation, but that got stopped out. I immediately switched short trying to capture another pullback leg to VWAP. I went with considerable size risking a move back into the consolidation.
About 15 cents in I took off 1/3 of the position to cover risk. I continued to take profits into VWAP, but kept a large portion of my position on with trailing stop above the next whole number at $58. It almost seemed like they knew where my stop was and hunted it down. I still had quite a position when this came into VWAP and was looking for further downside (and it was there), but for getting stopped out.
This was a nice momentum scalp of a single leg of price action out of a consolidation. I took it with good size which contributed to my overall profits on the day. I do wish my trail stop hadn't gotten sniped, but it's part of the game.
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