JPMorgan Chase & Co. (NYSE:JPM) Initiated with a Sell Rating at Stock Traders Daily

Banks continue to be questioned for an array of reasons, from Dodd Frank to global growth rates, and although earnings improvement is expected in 2017 from JPMorgan Chase & Co. (NYSE:JPM), we have seen analysts think this before and change their expectations as EPS release dates come closer.   We don't trust 1-year forward looking expectations but instead expect earnings to be more in line with post Q1 2014 rates.

With that, the current multiple levied on JPM, although not high to the naked eye, becomes quite expensive looking.  If growth is 2-3%, the 10x + multiple make it look expensive.  That's exactly what we are expecting in 2016 and probably in 2017 too.

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Given our macroeconomic assessments from our proprietary model, The Investment Rate, we expect pressure on US economic activity and asset prices, and with that more expensive looking stocks become high risk.  We consider JPM a sell for investors who want to reduce exposure to risk.

Technical Summary

Term →Near Mid Long
Bias Weak Neutral Neutral
P1 57.98 49.09 51.33
P2 59.02 55.58 58.65
P3 59.75 61.57 65.25

Long Term Trading Plans for JPM

March 14, 2016, 10:46 am ET

The technical Summary and associated Trading Plans for JPM listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for JPM. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

JPM - (Long) Support Plan

Buy over 58.65 target 65.25 stop loss @ 58.39.
The technical summary data tells us to buy JPM near 58.65 with an upside target of 65.25. This data also tells us to set a stop loss @ 58.39 to protect against excessive loss in case the stock begins to move against the trade. 58.65 is the first level of support below 59.34 , and by rule, any test of support is a buy signal. In this case, support 58.65 is being tested, a buy signal would exist.

JPM - (Short) Resistance Plan

Short under 65.25 target 58.65 stop loss @ 65.51
The technical summary data is suggesting a short of JPM as it gets near 65.25 with a downside target of 58.65. We should have a stop loss in place at 65.51 though. 65.25 is the first level of resistance above 59.34, and by rule, any test of resistance is a short signal. In this case, if resistance 65.25 is being tested, a short signal would exist.


JPM Long Term Analysis


JPM EPS Analysis

JPM Dividend Chart

JPM Revenue chart

JPM Growth rate - Quarterly

JPM Growth rate - Yearly

JPM PE chart

JPM PEG chart

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