4 Trade Ideas for JP Morgan: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

JP Morgan, $JPM, comes into the week reversing from a pullback to a retest of the January 2026 high. It also reset by touching the 100 day SMA. The morning star pattern was confirmed with a move up Friday. It has an RSI rising in the bearish zone but from a lower low in RSI along with a low higher low in price giving an RSI positive reversal and a target to 405. The MACD is negative and continues to move lower. There is support at 336 and 330 before 326. Resistance higher is at 344 and 350 then 355 and 363. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.92% and will begin trading ex-dividend on October 6th.

The company is expected to announce earnings next on October 13th before the open. The October options chain shows biggest open interest at both the 330 and 315 strikes on the put side. On the call side it is biggest at 360 and 375 as well as 385. In the November chain open interest is biggest at the 320 strike put and the 390 call. Finally, in the December chain, open interest is biggest at the 300 put and the 370 call.

JP Morgan, Ticker: $JPM

Trade Idea 1: Buy the stock on a move over 345 with a stop at 330.

Trade Idea 2: Buy the stock on a move over 345 and add an October 340/325 Put spread ($5.40) while selling the November 370 Call ($3.50).

Trade Idea 3: Buy the October/November 360 Call Calendar ($4.36) while selling the October 325 Put ($3.00).

Trade Idea 4: Buy the December 320/350/370 Call Spread Risk Reversal ($1.35).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday, which with just 3 trading days left in the 3rd Quarter, saw equities weathered another storm as bond yields revolted higher and now head into an historically strong period in the election cycle.

Elsewhere, look for Gold to continue to hold onto the uptrend and avoid a reversal with Crude Oil stalling in the short term move higher. The US Dollar Index looks to continue to test the top of the zone while US Treasuries hold the move lower at 22 year high yield and all-time lows in price for the Treasury Bond ETF. The Shanghai Composite looks set to continue in consolidation while Emerging Markets show risk to the uptrend.

The Volatility Index looks to continue low in the normal zone, near the lows of the year keeping a tailwind behind equities. The charts of the SPY and the QQQ are breaking their flags over support on the shorter timeframe, on the edge of resuming the uptrend, while the IWM is continuing a short term downtrend. The SPY and QQQ continue to look strong on the longer timeframe with the SPY consolidating at the highs and QQQ breaking higher while the IWM now shows some risk to the 19 month uptrend. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Dragonfly Caps Blog