JPM and WFC

We recently looked at JPM and pointed out the two possibilities in the count repeated here;

jpm july 14 2015

Quite clearly there is a triangle here, either as a b in a B-wave or, if drawn much larger (not shown) as a wave 4 in the entire sequence. The “channel” is hard to determine but must run something like shown by the light grey lines. Presently we are outside and above that channel. Also we are beyond the apex in terms of time and both the a and c legs of the B-wave are equal in magnitude if not as vectors. Wells Fargo, now the largest bank in the US is at a similar though different extreme point;

wfc july 14 2015

Both counts could apply to as well, however, as it lacks the triangle right in the middle the B-wave is a little more tentative. The channel, on the other hand , is more pronounced and again we are above it. Both look well done to me and, granted that does not mean that these stocks have to turn on a dime the next few days, they are sells nevertheless.

Banks are reporting again this week and considering we have had 26 such occasions since the lows they usually pass uneventfully. This time could be different. Remember also that both these stocks have added almost as much or more value in the past four years or so than over their entire existence prior to that.