Wells Fargo Is Your Bellwether

You may be tempted to wait for The Fed’s Beige Book, set for release Wednesday afternoon, but by then the market will have already decided its direction on the week.

It will come down to how the market reacts to earnings from Wells Fargo, JPMorgan, and Bank of America.  Citigroup reports October 15^th—this week’s market direction ought to be well established by then.

Barclays had a positive note on Wells Fargo last Friday and JPMorgan put out a WFC upgrade last week too.  They’re all pulling for Wells Fargo while the other expectations for the other banks are mostly muted.

Sporting the largest market cap in the group, it makes sense to keep a close eye on how WFC shares trade Wednesday morning.  They report Wednesday BMO.

My forecast?  It takes the market DOWN.