RUMOR ALERT: Wells Fargo Account Scandal Not Limited To Consumer Banking

Whispers are going around that Louisiana Republican Senator David Vitter has said the Wells Fargo’s account scandal is not limited to consumer banking.

The San Fransisco bank has become the government’s punching bag after the Justice Department determined they had fraudulently created over 2 million fake bank accounts and credit cards designed to slowly suck late-fees out of their customer’s accounts.

Since paying the $185 million fine, the firm was also fired by the Sate of California, who announced they would no longer issue municipal bonds through Wells Fargo nor would they conduct any investment banking with Wells Fargo securities.

Last Friday the Justice Department also determined the repo division of Wells Fargo had illegally taking possession of over 400 service members’ vehicles.

Now rumors are flying that Louisiana’s Senator Vitter is fixing to take a hard look at their business banking practices.  Many suspect their other actions are a likely indication that shenanigans were afoot in business banking also.

WFC shares are breaking down below their multi-month range low of about $44/share.  If the selling persists, it is likely to trigger a fast, liquidation type move, with little in the way of support until around $35/share.

This is a developing story without credible sources.  The good folks at iBankCoin will update the story as more information becomes available.

NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume.  Price worked higher from Monday, pushing near last week’s high before settling into two-way trade.

The economic docket is extremely light today.  There is a 4-Week T-bill auction at 11:30am.

Yesterday we printed a neutral extreme up.  After a gap down into the week, sellers made an early push.  Their actions stalled out by 10am.  A weak low formed before we made a quick push to range extension up and close the weekly gap.  Responsive sellers were found up here and we traversed the entire day’s range to go neutral.  Sellers could not, however, take out last Friday’s low.  Instead they printed a failed auction before we again traversed the entire range to close near session high, earning the session its ‘extreme’ nomenclature.

Heading into today my primary expectation is for sellers to work the overnight gap fill down to 4866.50 then take out overnight low 4864.75.  Look for buyers down at 4861.50 and two way trade to ensue.

Hypo 2 buyers work up through overnight high 4881.25 and close the open gap up at 4886.50.  Sellers defend at 4887.75 and two way trade ensues.

Hypo 3 strong buyers take out overnight high 4881.25, take out open gap 4886.50 and sustain trade above 4887.75 setting up a move to target teh 4900 century mark.  Stretch targets are 4907 then 4916.

Hypo 4 strong sellers push down through 4861.50 setting up a move to 4849 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

You see a couple of stories like this every year, where the Saudi royal family commits a barbaric act of feudalism, unaware that the whole world isn’t their kingdom.  Last year it was Prince Majed bin Abdullah bin Abdulaziz Al Saud demanding his boy servants fart in his face while he pleasured himself.  This year it is Princess Hassa ordering her body guard to kill a Parisian painter for taking pictures of the room he was hired to decorate.

The Saudi princess who allegedly ordered one of her bodyguards to kill a Parisian painter and decorator with the words, ‘You have to kill this dog, he doesn’t deserve to live,’ has been named in French media as Princess Hassa, 42, the only daughter of King Salman of Saudi Arabia.

The princess has now reportedly fled Paris, after pleading diplomatic immunity against prosecution, but her bodyguard, who is accused of ordering the unfortunate decorator to kiss his boss’s feet, was arrested and held for two nights before appearing in court Saturday.

Tesla investors are the stewards of winship this Monday, this dumpy Monday when 70% of stocks are lower on the session.  On Sunday, the electric car maker said it delivered 24,500 vehicles in the third quarter, besting Wall Street expectations of around 23,000 vehicles.

Shares of Tesla are up around +4% on the sales figures after recently testing the low-end of their multi-month range.

Tesla bulls defending its rock-solid range low $TSLA #bullish

— Raul (@IndexModel) September 26, 2016

Look for Tesla to continue to exceed Wall Street expectations as their diverse team of engineers and fearless Leader (all praise and glory to The Leader) press onward with the electric-autonomous car revolution.

Long live Tesla!  Long live The Leader!

Writer’s not: I am long of Tesla shares and will always be long of Tesla shares until you pry them from my cold, dead hands.

Futures over at the NASDAQ electronic exchange are pricing a gap down to start the first week of October after an overnight session featuring normal range and volume.  Price held last Friday’s range overnight on balanced trade that worked slightly lower.

On the economic docket today we have Construction Spending and ISM Manufacturing at 10am, also a 3- and 6-month T-bill auction at 11:30am.

Last week also kicked off with a gap down–a slightly larger one.  Then Monday was spent in a tight range.  Tuesday worked higher to close the weekly gap, and when price attempted to break Monday’s low on Thursday, strong responsive buyers were on the scene defending ahead of the lows.  Friday saw price push up before a fast sell at the end of the day.

The performance of each major index last week can is below:

Last Friday we printed a normal variation up which featured an air pocket formation.  This volume profile void formed because price discovery up was taking place.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4865.75.  From here look for a move to take overnight high 4879.50 and close the gap up at 4886.50 before two way trade ensues.

Hypo 2 sellers push down to target the MCVPOC at 4837 before two way trade ensues.

Hypo 3 strong sellers work down to testing the low end of value–4830.75 then 4823 before two way trade ensues.

Hypo 4 strong buyers close overnight gap 4865.75, close gap up at 4886.50, then sustain trade above 4888 setting up a move to target 4900.

Levels:

Volume profiles, gaps, and measured moves:

Greetings and 10,000 salutations from the data factory.  The machines have been oiled and fresh stock fed into their coffers.  The result?  Uniform output of signals and bias.

Signals and bias.

Many people question why I come here, to these hallowed halls, day-in-and-out.  The truth of it is simple–college refused to teach me how to actively speculate in the stock market.  I share my findings so hopefully people less skilled than me learn from my mistakes, and those more advanced correct me or offer guidance.

Nearly 2-years into trading full-time and it has finally become something I am comfortable doing.  Comfortable that I can follow my rules but aware of how quickly it can all go wrong when my ego starts making decision.

And yes, I also write opinion and politics.  That is to expand iBankCoin’s propaganda arm.  Or goal, of course, is domination of the interwebs.  We are a lean organization that cannot succumb to the pressures of social media censoring or political correctness.  If something is bullshit, it shall be labeled as such without a phone call from a stiff editor who lives behind a desk.

Quite the Sunday digression I suppose, heading into the last quarter of 2016.

Anyhow the model I’ve hand built over the last 99 weeks with help from the algorithims inside Exodus and countless conversations with traders much wiser than myself is out with a bearish call heading into next week.

With all the trimmings (NASDAQ transports breaking consolidation to the upside, bullish sector rotations, seasonality) I have reason to think the downside will be limited.  However, early in the week I expect to see some weakness.

If instead the week starts strong, I may look for a spot to fade buyers or book some long exposure.

Over on the NASDAQ futures, I will be scalping longs only (5-6 point grabs) and pressing shorts for more.

Now I must get back inside the laboratory and fuss with my latest gadgetry.  Good day.  Enjoy your American football competitions.

Exodus members: the 99th edition of Exodus Strategy Session is published.  Go check it out!

The hits keep coming over at Wells Fargo.  While still reeling from their fraudulent bank account scheme, the bank will be paying $4.1 million to settle Justice Department charges that it violated federal law by seizing 413 cars owned by service members without a court order.

The Justice Department said the illegal repossessions took place from 2008 to 2015. The first complaint came from an Army National Guardsman in North Carolina who said the bank seized his car while he was preparing to deploy to Afghanistan.

Wells Fargo then auctioned his car and tried to collect a balance of $10,000 from his family, the Justice Department said.

The bank will pay $10,000 to each of the affected service members, plus lost equity in the cars with interest, and repair their credit.

Source: Jackie Wattles, CNN Money

If it keeps on raining, the levy holding WFC shares up is gonna break.  For now, shares in the company continue to behave as if all these bankster activities are a normal part of being a bandit bank in the wild west.

NASDAQ future are coming into Friday, month-end/quarter-end, with price unchanged after an overnight session featuring a normal range and elevated volume.  The market worked down through the Thursday low briefly (by 3-ticks) before reversing and pushing back up through the Thursday midpoint.  At 8:30am Personal Income/Spending data was inline with expectations.

Also on the economic docket today we have U. of Michigan confidence at 10am, Fed’s Kaplan speaking in Dallas at 1pm, and also the Baker Hughes rig count at 1pm.

Yesterday we printed a normal variation down.  Price opened gap down and once the overnight gap was filled sellers began driving price lower, down through the Thursday low.  This set up an even harder down rotation (news driven, $DB) and finally a small 3rd rotation which probed near the weeks low before finding a strong responsive bid to close the day near its midpoint.

Heading into today my primary expectation is for a fast push down off the open, down to 4823.50 (VAL).  From there buyers step in and work up through overnight high 4847.75.  Buyers continue higher to target 4866.50 before two way trade ensues.

Hypo 2 buyers push off the open, take out overnight high 4847.75 early on then sustain trade above 4866.50 setting up a move to target the open gap at 4886.50 before two way trade ensues.

Hypo 3 strong sellers push down throguh 4823.50 to take out overnight low 4811.75.  Look for responsive buyers down at 4799.75 and two way trade to ensue.

Hypo 4, full on window dressing, push up through current swing high 4892.25 to tag the 4900 century mark.  Look for sellers up at 4907.

Levels:

Volume profiles, gaps, and measured moves:

The bankers at Wells Fargo are being hunted like bandits by the state of California.  On Wednesday California Treasurer John Chiang issued a release condemning the bank for defrauding California customers.

Chaing said the gold coast state will no longer use Wells Fargo for the issuance of state municipal bonds, and will no longer invest in any Wells Fargo securities.

The state is distancing themselves from the San Fransisco bank after federal regulators determined Wells Fargo secretly created millions of unauthorized bank and credit card accounts.

Troubles are mounting for the bank despite executives at the firm doing their best to blame their underlings for the fraudulent activity.

Shares in the company are down nearly -10% since September 9th, when regulators levied a small fine against the firm.  This bodes well for former WFC banker Kevin Pham, who last week organized national close your account day, urging customers of the bank to sever their relationships with the bank while also shorting the company’s shares.

Apparently California is on board with the young man’s plan.

The sanctions put in place by California’s treasury will last for at least 12 months.

NASDAQ futures are coming into Thursday gap down after an overnight session featuring normal range and volume.  Price took out the Wednesday high overnight before trickling lower for the remainder of the night–working back down to the midpoint of Wednesday’s range.  At 8:30am a slew of economic data points were released including Advance Good Trade Balance, Wholesale Inventories, Annualized GDP, Personal Consumption, and Initial/Continuing Jobless claims.  Data was mixed overall, perhaps slightly better than expected.

Also on the economic calendar today we have Pending Home Sales at 10am.

Yesterday we printed a neutral extreme up.  The market opened with a small gap up which sellers quickly closed.  Sellers continued lower, working down into Tuesday’s trend day but finding responsive buyers in the trend’s upper quadrant.  Said buyers became initiative later in the day after working price up through the entire daily range, pushing out through the other side of initial balance and closing the market near session high to earn the ‘extreme’ designation.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4867.25.  Buyers continue working higher, up through overnight high 4876.50 and work up to the open gap up at 4886.50 before two way trade ensues.

Hypo 2 buyers close gap up to 4867.25 and find sellers who push hard and send us back down through value to take out overnight low 4855.  Buyers defend ahead of Wednesday low 4844.75 and two way chop ensues.

Hypo 3 strong sellers work down through overnight low 4855 then work lower to target 4834.25 before two way trade ensues.

Hypo 4 full on rally, close gap 4867.25, take out overnight high 4876.50, close open gap up at 4886.50, the probe up through current swing high 4892.25.  Look for sellers up at 4900, then 4907, then finally at 4916.25.

Levels:

Volume profiles, gaps, and measured moves: