The major indices opened with nice gains last Thursday, reflecting strength in Meta Platforms Inc. (META) and Microsoft Corp. (MSFT) after positive earnings reports. But the open represented the high of the day, as investors sold strength. Meanwhile, I have my eye on Capital One Financial Corp. (COF), writes John Eade, president of Argus Research.
The S&P 500’s range was 88 points from high to close, which is certainly an uptick in volatility. The majors traced out bearish engulfing candlesticks, which can sometimes represent an intermediate-term top. While we have been looking for an uptick in volatility as well as lower equity prices, some downside follow-through is needed to confirm if a “pullback” in stocks may be underway.
Capital One Financial Corp. (COF)
Meanwhile, when ranked by assets and deposits, Capital One is one of the largest banks in the US, with top-tier national businesses in credit card and auto lending -- and a retail and commercial banking presence in the New York, Metro DC, and the Louisiana/Texas markets.
COF has been a big winner over the years, but has had its bumps and bruises. The stock completed a base in late 2023 but struggled before exploding in October 2024 and peaking at $210 in February 2025.
COF fell to $150 in early April, but completed an inverse head-and-shoulders formation in early May, then moved to all-time highs. We would put a stop-loss just under chart support at $198. We would take profits at $233.
