Saturday, April 23, 2011

Trade Update: JPM


I have been thinking and rethinking our short position on and soon to be death of the criminal house of Morgan. In the video above Bob Chapman goes through three possibilities. It is informative and insightful. It starts at about the three minute mark.

This is a seesaw trade with physical silver acting as the counterweight. So, what are the threats to our position? Well it's clearly anything that keeps the well connected JP Morgan alive. And the most likely thing is another federal bailout for the big bankster. You can bet that this is being discussed behind doors now. So, we have to take this into account has we hold this short position open.

Now the last time Morgan got a public hand out the shares fell all the way to $15 before they began to recover. Morgan closed last week at $44.68. Now I am not saying that Morgan will fall to $15, I think that it will go lower when investors loose confidence and short sells go crazy. But I will not put on the rest of our short position until a firm break of $42.

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