JP Morgan – “Coming out of the Blue!” (Again)
October 18, 2012
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I wrote this blog the first time JP Morgan transited up through EBV-3 back on March 9, 2012. Obviously JPM transited down through EBV-3, which nullified this blog post or observation. (Remember I don’t recommend stocks in my blogs, just making observations).
Well here we are again with JPM transiting up through EBV-3. Here is our short-term chart (weekly bars) from our Facebook application.
JP Morgan with weekly price bars, EBV Lines (colored lines) and model price (dashed line)
For those interested, a daily updated chart of JPM subsequent to this post will be maintained on Facebook, here.
Yes, the charts of JPM and Goldman Sachs (GS) seem identical, except for our Model Price calculation points to more value in JPM than in GS. What I said back in March on JPM is still relevant today. This is good news not only for the US economy but also for these two huge financial companies that have approximately $3.5 trillion dollars in assets.
Obviously as I have written before, if JPM and GS transit back down through EBV-3 all the good news which I have written about will have no relevance or if your investing in these names, a negative transit would be your stop. Then we will wait again for a positive transit. Yes, this can be frustrating however risk is reduced significantly for investors investing in these names.