Wells Fargo May Be Buyable Soon… and 4 Other Thoughts on Today’s Market

1) Wells Fargo's Trip

Wells Fargo (WFC) is coming under a ton of heat for its fake credit card account scandal, and it looks like it's about to form a triple bottom with its February and June Brexit lows.

I'm putting it on my long radar.

I'm sure the company will pay a penalty, beef up employee oversight, and get a stern talking to from the powers that be. The optics are awful, but this scandal will eventually pass.

If British Petroleum (BP) came back from its oil spill, Wells Fargo can recover from this.

2) Buy the Bad News?

Today's economic data was mostly lousy, yet the hawk trade — dollar up, banks up, gold down — is still going.

So it looks like traders just weren't surprised because the data has been so lousy lately.

Fed funds futures barely budged. They're pricing in a 50% chance of a December rate hike, essentially unchanged today.

Or maybe folks just want to see CPI tomorrow before pressing dovish bets.

3) The Apple Market

As I write this, the DJIA is up 58 points.

Apple (AAPL) accounts for 23 of those points.

I thought the stock was peaking near-term yesterday, but it's above $115 for the first time since December 2014.

4) Donald's Health

Donald Trump released lab test results for the first time today, showing normal cholesterol, blood pressure, liver function, and thyroid function.

Now I try to steer clear of politics, but people are increasingly focused on the health of the candidates.

Anything that's good for Donald tends to be good for biotech (IBB) — even though like Hillary, Donald has called for negotiating Medicare drug prices.

5) Sentiment Update

AAII sentiment is 27.9% bullish, well below the 38.5% long-term average.

The ISE Sentiment Index is at 76 this morning, indicating moderate bearishness.

Yesterday's Investors Intelligence survey showed that 49% of traders are bullish, slightly down but still fairly high.

So sentiment remains very mixed. Traders are spooked a little, but not freaked out.

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