Thursday, August 4, 2011

Trade Update: JPM

I think we will be getting stopped out of or short position on JP Morgan JPM very soon. Take a look at the three month chart and you can see the support that has developed between $39 and $40 range. Morgan has been scraping the rocks along here for a couple of months now and yet it has held. With the stochastic poised in deeply oversold territory you gota expect a break back up anytime now.

The truth is that I almost took off the stop and covered myself yesterday except the SLV broke $40 and closed higher than JPM did at $39.90. So, that means that the SLV JPM seesaw effect is back in effect. Well I'm not sure of it, but I think it's worth the risk to find out.

We entered short JPM at $42.75 and right that is where we put our stop. I think it is worth the risk of a break even trade to see if the increase in silver price has an effect on Morgans silver short position and it's share price by extension.

No comments: