We executed the following transaction(s):
-
We bought Wells Fargo (WFC) which comprises 10% of our portfolio.
This based on the work of our September 26, 2016 posting titled “Wells Fargo Downside Targets.” In that posting we said the following:
“Of the two, the most ideal downside assessment of WFC is the SRL. However, if you’re attempting to actually buy the stock in stages as the company declines in price, Dow Theory afford more opportunities. A three stage purchase plan based on Dow Theory should be 50%, 25% and 25% for the $31.66, $23.40 and $15.15 price points.”
We’re allocating nearly 10% now, instead of 20%, because using the same analysis suggests that $13.79 is the next target for the stock price if it were to replicate the decline of the 2009 low.