JP Morgan (JPM) recommendation is being withdrawn.
JP Morgan reports unexpected big investment loss in the range of $800 million to $2 billion.
JP Morgan’s CEO calls the loss egregious and self-inflicted. JP Morgan now sees more portfolio risk than they recently disclosed in their earnings call.
This appears to be a two quarter problem.
The conference call with JPM is in progress. The stock is trading at $38 down about $2.70 at the time of this writing. This information was disclosed by JP Morgan after the close.
Fund flows are extremely negative. Very light Smart Money buying is taking place right around $38.
A billion dollar loss is nothing to scoff at, but it is pocket change for JPM. Of concern is that there is more risk in JPM portfolio than even the management thought.
This debacle is likely to result in a great investment opportunity in the near future. JPM is the best bank from an investment perspective in the whole wide world. An opportunity to buy JP Morgan on the cheap may be near.
Here is the tentative plan. To the 5% of full core position size, 25% more of full core position size will be added in the zone of $30.00 – $34.52. Suggested points in the zone are $30.26, $31.32, $32.13, and $33.11. Paying subscribers will get another signal when the time arrives to make the additional purchase.
We will be closely following JPM in the ZYX Buy Change Alert and plan to issue a buy signal on the Real Time Feed of the ZYX Buy Change Alert when all six screens of the ZYX Change Method are met.
