Are you trading JPMorgan (JPM). Here are some thoughts for you. (July 28, 2012)
JPM
I’m Dan Fitzpatrick at StockMarketMentor.com on Saturday, July 28th. I just want to take a quick look at JP Morgan ( $JPM JPMorgan Chase & Co. ). Members, I’ve got kind of an extensive weekend update, which is one of the reasons why it’s out kind of late. Look, JP Morgan ( $JPM JPMorgan Chase & Co. ) the 200 day moving average is really what defines resistance here; so much of the market rallied last Thursday and Friday, it should be no wonder that JP Morgan’s ( $JPM JPMorgan Chase & Co. ) up as well. With that said if you’re buying now you’re buying late, make no mistake about it, if you’re already long then feel free to stay long, I’m long, I’ve got a boat load of call options here; I don’t plan on selling them, I plan on letting them ride because I think JP Morgan ( $JPM JPMorgan Chase & Co. ) is going to go higher. But guess what? Let’s not talk about the leverage of options, that’s a different deal; let’s just talk about stock. I’ve mentioned this a lot and that is the importance of paying attention to the intraday lows on a stock that’s trending higher. The same thing goes on a stock that’s trending lower, pay attention to the intraday highs; but here look at the lows, that’s the lowest, each day since then it has been higher low. Of course the closes have also been higher but that’s less important to me than looking at the intraday lows. As long as we’re seeing evidence that demand continues to be greater than supply, at the lowest weakest part of the day, then we still want to be long this stock. I would suggest staying long JP Morgan ( $JPM JPMorgan Chase & Co. ) until you see a lower intraday low and right now that would be $35.51 so if JP Morgan ( $JPM JPMorgan Chase & Co. ) starts pulling back and starts printing a lower low then at least you know that this channel persists; and by the way this is not a small thing, this is an important channel here, the stocks up at the top of resistance here or up at the ceiling, up at the top of the range, which means that I want to be extra careful and this implicates my call options; I want to be extra careful in holding the leverage position when a stock is up at recognized resistance because it can reverse on you. But if you just long the stock, watch the intraday lows, I think they’re going to keep you in the trade a lot longer and that’s where you want to be; you want to let it work until it stops working. Okay members, over the weekend update. Free Chart