Of course... I simply point out the problem with Div stocks in this environment. 3 months ago, this would not have happened. I could have stayed on 16 but the dealer had a 10 showing - I busted and so did she.
This is rate hike selling - You can chart the last spike to $75 in-line with Sept postponement of .25 fed hike.
The question is, will the selling continue when the hike is certified? 67 seems like a good buy...and the div is 3 points higher than the 1/4 pt you will get with a CD
There is no doubt WF markets have some of the best food available to consumers - but you have to be willing to spend the premium. I live near one...in a ritzy part of LV and I see people buying 10 items - and the store is about 30% full of shoppers. There is always a tipping point - with price point!
I do not have any reason to believe it is anything other than money flows - anticipating the rate hike - If that is delayed into 2016 - I would think the money will come back to chase the Div to get year end benefit. - I am not a wizard...I just watch the flows - not a technical observer.
Seems Sept is the consensus - hence the drop to 66 on the horizon. Makes a buy very interesting regardless. The economy remains fragile that the hike will be the only one for a long time, .25 versus 4.25 ?
Any entry in the 68's (if you think the rate hike will be Dec) and you get a nice 2-3 dollar pop.
You just have to consider the odds of rate hike this month or in 3. Duk could test 66-67 with the rate hike confirmed.