JP Morgan, Goldman Sachs – “Coming out of the Blue” (Again) and (Again)

These two names have been frustrating to say the least.  Over 2012, both JPM and GS have had two positive transits up through EBV-3, which we call “Coming out of the Blue”, with subsequent negative transits down through the same EBV-3.  However in the last few days both GS and JPM had positive transits again.

Here are the charts as of last night’s close.

JP Morgan

JP Morgan with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

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.

Goldman Sachs

Goldman Sachs with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

Goldman Sachs with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

 

For those interested, a daily updated chart of GS subsequent to this post will be maintained on Facebook, here.

I have too much respect for EBV-3, not to trade based on these transits.  Yes, as I have said before this can be a frustrating experience for traders to be in and out of a position as it transits especially with these names in particular.  Positive and negative transits can and will represent shifting risk and reward metrics for individual stocks and as traders or even longer term position holders by taking action in your investment account as these transits occur is maximizing one’s reward with considerably less risk.  Isn’t this what investing is about, minimizing risk with maximizing reward?

I have included links to my previous pieces on JP Morgan and Goldman Sachs on their previous breakouts, with a lot of explanation detail I hope you find useful.

Goldman Sachs – Breaking out of the Blue! (Again)

Goldman Sachs – Breaking out of the Blue!

JP Morgan – “Coming out of the Blue!” (Again)

JPM – JP Morgan – “Coming out of the Blue!”

 

Hopefully this third positive transit is the charm!

 

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