Wall Street Buddha

JPM–The Calm before the storm June 30, 2009

You can see, JPM is consolidating between the bold white lines. Why should we care? According to popular trading theory, a trend should ensue beyond those borders. If it breaks below, we go short. If it breaks above, we go long.

Why I like this trade? It’s basic. Nothing fancy. It’s Technical Analysis 101.

The entire banking system is on the shoulders of JP Morgan. Big bank that bought banks like WAMU. Sometimes I wonder if it’s a good idea to buy a toxic bank.

By the way, The stock could continue in this boring fashion for a long while. This is where the PATIENCE comes in.

I’m willing to bet the next major move will be quite violent. Hopefully it’s up.—for the sake of the country.

JPM- JP Morgan Chase June 21, 2009

JPM is setting up very nicely. We can see that the stock has rallied ABOVE the 200ema. Quite bullish. It’s starting to consolidate. i.e. channel / wedge. And lastly, what I call the “CONVERGENCE OF MOVING AVERAGES” . It is here where a great battle between Long, Medium, Short term traders will be.  It is likely there will be much participation in the next move. Up or Down.  I’m looking to go short if we break below 200ema & bottom of channel. I’ll go long above the wedge/channel.  Ofcourse the trade can be rejected if the action isn’t right. the breakout must be violent, and high volume. The markets and sectors also have to be pointed in the right direction as well. Gotta have market forces behind me.  The wind has to be at my back to fill my sails. You know?

Most likely I’ll take this trade. I’ll let you guys know. Follow me on Twitter or RSS Feed.