Finding a silver lining in JPMorgan’s 2Q earnings report Yesterday, JPMorgan Chase (NYSE: JPM) reported that the bank's second-quarter earnings fell as a result of adding $428 million in bad loan reserves.
With this view, JPMorgan has chosen to temporarily halt its share repurchases in order to meet regulatory capital requirements.
According to a statement from JPMorgan, the reserve rise was primarily to blame for the earnings decline of 28% from a year earlier to $8.65 billion. Additionally, JPMorgan, which has one of the largest operations on Wall Street, was hurt by the slowdown in Wall Street transactions. Investment banking fees dropped sharply by 54% to $1.65 billion, $250 million less than the forecasted $1.9 billion.
Fixed income trading revenue increased by 15% to $4.71 billion, Although it still fell far short of analysts' expectations of $5.14 billion for the quarter while strong results in macro trading were offset by a decline in credit and securitized products, resulting in a quarter-end revenue that was far below analysts' $5.14 billion projection.
On the positive side of its report, revenue from equity trading increased by 15% to $3.08 billion, beating the estimate of $2.96 billion. Rising U.S. interest rates and a growing book of loans are two positive factors for the firm. For the quarter, net interest income increased by 19% to $15.2 billion, exceeding analysts' expectations of $14.98 billion. JPMorgan stated during the firm's investor day in May that rising rates will allow it to surpass its main goal of 17% returns this year faster than anticipated. However, the firm has achieved that goal this month.
JPM stock dropped about 5% in intra-day trading on Thursday but found the support to finally settle only 3.5% lower at closing. JPM now trades at a 90-week low, but with a rumored 100 basis-points rate hike due from the US Federal Reserve within a couple weeks, perhaps bank stocks will find their bottom before the rest of the market.
JPMC34 trade ideas
JPM - BULLISH SCENARIOJPMorgan Kicks Off Bank Earnings Season
The bank will re-test the major resistance of the falling wedge.
If a positive outcome occurs the next major resistance level is located at $132, or more than a 16 % possible return for the bulls.
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JPM options ahead of earningsIf you haven`t shorted JPM after the Q1 results:
then ahead of Q2 earnings I would buy the following JPMorgan Chase & Co. (JPM) puts:
2023-1-20 expiration date
$113.19 entry price (approximatively)
$90 strike price
$3.15 premium/share
Looking forward to read your opinion about it.
JPM - Revised LookHaving a look at JPM and comparing similar price structures leads again to a bearish result following this recent growth on the Weekly chart
Bottom point will be most likely along the horizontal green line and very like the point in the orange circle
JPMorgan Targeting A $100 TestIn this update we review the recent price action in JPMorgan and identify the next high probability trading pattern and price objectives
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Gap in the Rearview MirrorGreat stock and a strong stock with a very long impulse wave up.
It is often easier to draw impulse waves that are this long on weekly or monthly timeframes. It is easier for me to see the beginning of the wave as well.
Fib levels on the way down are marked as possible pull back levels. Price may stop in between two levels as well. Look for a level of support/consolidation.
There is a GAP to the left from a while back. I see consolidation under that gap.
As support levels fail, I set and alert for the next level. As of late I have done this numerous times for some stocks that I like.
My sister wants this one and thinks I am a fortune teller or something. She asked me "Do you think the market will hit bottom by next Friday?" She does not trade.
I am like "probably not. LOL" )o: When everyone is nauseated and thinks there is no hope, maybe we will hit bottom.
No recommendation
Don't forget to look in the rearview mirror.
The impact of the global recession The global recession will take effect, and the Vikov pattern will be fixed, and some suffering will be fixed for a while.
JPMorgan Testing Symmetry Swing ResistanceIn this update we review the recent price action in JPMorgen and identify the next high probability trade location and price objectives to target
JPM double bottomDouble bottom with divergence on MACD, RSI and Stochastic with 61.8% Fibonacci support from the bottom of the corona crash. Compared to the index finances are looking a lot better with JPMorgan Chase & Co. and Citigroup leading the way. Breakout of falling Wedge pattern shows a great opportunity for a Long position.
JPM Repeating Bearish PatternJPM is just above a major trend line (white)
It is forming a top pattern at the 1.272 Fibonacci line
This top pattern is very similar to what has been seen in the past, which led to a small break down of the trend line (red hammers)
This is the Monthly timeframe
JPMorgan Trading The WXY PatternI this update we review the recent price action in JPMorgan and identify the next high probability trading opportunities and price objectives to target
$JPM 4h Looking BullishVery bullish action on 4h with TTM Squeeze now positive and RSI calling for further upside. Watching closely..
JPM - Short Term Opportunity with 60% Upside?Given the tendency of banks benefitting from the periods when interest rates are rising, is JP Morgan going to provide investors an impressive 60% upside at these turbulent times?
Let's look at it in more detail.
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - impressive 31% in 2021
P/E - 8.7x which is considerably lower than the current S&P500 ratio, i.e. very attractive
Liabilities - no problems with considering this is a banking sector
Technical Analysis (Elliott Waves):
Following the correction of March 2020 shares of JPM have been growing but in a very choppy manner which indicates a potential development of an Ending Diagonal pattern
Waves 1 to 3 have been already completed and we are observing the shaping of corrective wave 4. It has already entered the space of wave 1 bust just about and it's likely to correct a little deeper
Once wave 4 is completed this scenario suggests another zig-zag to the upside before global and very lengthy correction starts, that may last more than 2 years for JPM
What do you think about JP Morgan and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.
Thanks
PS Below is the Educational post about Ending Diagonals
JPMNot financial advice.
The essence of investing & trading is the intelligent and patient preying on the greed, fear, impatience, addiction and ignorance of the majority. It's definitionally Darwinian.
Short scalp $JPMBased on its downtrend, regress off resistance and a familiar chart pattern confirmed by my technical indicators, I expect at least half a percent in profits IF $JPM breaches yesterday's low of $122.16 during today's session.
JPM - MONTLY ANALYSISFollowing the trend, I'd buy JP Morgan if breaks the latest high
Stop Loss - Below the lowest low from the previous candles
1st Target - R/R = 1,00 - 1/3 Position
2nd Target - R/R = 2,00 - 1/3 Position
3rd Target - R/R = 3,00 - 1/3 Position
JPMorgan Falls Thru Trap-Door Equivalent to Pre-COVID HighsNot much of an explanation needed here... financials have been struggling, and JPM right along with them. What's notable here is that price has fallen below the pre-COVID highs, which means that all recapture, plus growth obtained prior to COVID, has all be vanished for stockholders of the mega-bank.
Written & Annotated for the CMT Association.
Adam D. Koós, CFP®, CMT, CEPA
President / Sr. Financial Advisor / Portfolio Manager
Libertas Wealth Management Group, Inc.
JPM forming a descending channel?After ERs price made a below longterm support and it now can retest it as resistance.
I am watching price action to see if we can form a new descending channel.
JPM .50 FIB and 200 MA = BuyJP Morgan is a buy. 200 day moving average, .5 fib, while FED raising rates.
