JPMorgan looks resilient to recessionI read an interesting WSJ article this morning on JP Morgan. It seems that CEO Jamie Dimon believes JP Morgan can maintain its dividend even if GDP dips 35% this year. The bank has a large cash pile and a diversified portfolio because Dimon has long been designing JPM to be a "port in a storm."
www.wsj.com
JPM currently has a 4% dividend. It's possible that if you wait a while, the dividend yield will get even better. But 4% ain't bad, and if JPM believes it can maintain that, then this is probably the company to own in the banking sector right now. Also notice the positive signals on MACD and engulfing candle indicators.
CMC trade ideas
"JP Morgan: not looking good" by ThinkingAntsOk4H Chart Explanation:
- Price broke the Ascending Trendline and the Support Zone (now Resistance).
- It went down towards the next Support Zone and bounced from there.
- We expect price to retest it and, then, face a difficult zone on the Weekly Ascending Trendline.
Weekly Vision:
Daily Vision:
Updates coming soon!
JPM to Long, in Uptrend after FIB#38.2% retracementCondition:
1. Downtrend line was broken by breakaway Gap (G1).
Start a new trend.
2. double bottom reversal pattern in Weekly demand zone
3. Fib# 0.382 retracement,
4. demand zone.
Entry in demand Zone: below 92
Stop: 90
Target1: 97; risk/reward=1:3
Target2: 103; risk/reward=1:5
DZ2: This is a better demand entry, and match Fib# 0.618;
If it is a strong trend, It may not come to here.
This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
Chart fest: Bad news and good news 6/7$JPM is an excellent example of the good news and bad news state we find ourselves in.
With zero interest rates, banks are doomed as I have highlight before. $JPM is a long way from a real trough.
However, the price action is sitting on a weekly SSR support and the $ESA is looking bouncy. Watch out if you are short.
Long term strategy - buy banks for dividendsIt's now possible to own bank stocks and have the dividend yields carry the investment - for example using a larger renegotiated mortgage or 2nd mortgage for financing. It is highly likely this arbitrage opportunity will provide a floor (downside resistance) and simply wait for the economy and markets to stabilize (cap gains). The Canadian banks are particularly attractive, but their is currency exposure for US residents.
JPMorgan / testing Monthly EMA50.If you are a long-term investor, I would wait
JPMorgan Chase & Co.testing Monthly EMA50.
38.2% correction since 2009 low.
RSI monthly 44-
RSI weekly oversold 25, but no divergence.
Too risky to short, to early for long-term buying.
Long-term stock investors still shouldn’t buy the dip, but it’s an opportunity-filled environment for pro traders.
If you are a long-term investor, I would wait........
Disclaimer:
We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature,
and are therefore are unqualified to give investment recommendations.
Always do your own research and consult with a licensed investment professional before investing.
This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
Swing Trade or Weekly 138 PUTS - low cost, low risk tradeThis trade does not have strong signals for puts. Price is at top of cloud and 10sma is over 20, but 20sma has crossed below 50 (yellow arrow). RSI dipped below 50 on 2/18 and is back over today, which is bullish. If stock turns then RSI and Stochastic will both dip below 50 (green arrows)
That said, today's Fed minutes or any economic news (credit bubble, rates, repo lending, etc.) may cause selling after a strong run up and some claim stocks are "propped up" right now. I am keeping stock on watch list for a swing trade.
I opened weekly 137 puts at 37cents, and I exit position if stock trades over 138.50. Keep trade size small. If I hold overnight and stock opens higher I still lose only a small bit of principal. If stock drops back to 20sma or to recent gap, my return on capital will easily be over 100%.