This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Wall Street Webcasting Presents: Wells Fargo Securities: “Watch The Stock Charts In The Coming Weeks For Clues On Bond Market Direction”

Stocks in this article: WFC

Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities ( NYSE:WFC). This week, Gordon discusses the analysts markets versus traders markets.

The prices of financial assets are driven by the degree of company any economic data in an analysts market. In a traders market, the data is put on the back burner to technical signals in the charts of the financial assets themselves. Algorithms become the leading effort in amending price levels. Volatility tends to increase as a result. We are essentially witnesses of this, as we are currently in a traders market.

The Wells Fargo Securities analysts believe that the stock markets have been driving the bond markets with a negative price correlation. They believe that this will remain the case until the release of the next Payrolls Report in 3 weeks and investors are more directed to economic fundamentals.

There are a few things that the Wells Fargo analysts are keeping an eye on. For example, the Biotech sector, a smaller sub-set of the extensive market, has been the most over extended throughout the first quarter of this year. The growing price gains throughout the second half of 2013, along with the first few months of 2014, was contrary to the Fed’s decision to begin cutting back on loose liquidity conditions by tapering. They’re looking to see whether or not the Biotech sector closes below the 200 day moving average consistently for a considerable amount of time.

The chart of the S&P looks to be somewhat better than the higher beta domestic stock sectors, but not by much. An important question to deliberate is whether the S&P follows the higher beta sectors lower. The 50 day moving average has been disrupted, and the upward trend line is only 2% below the current level. Wells Fargo’s analysts believe that the 200 day moving average will be put to the test throughout the weeks to come.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs