Making an official thread for JPM, and the other banks.
Banks have upcoming earnings on the week of January 14th. They’re currently trailing the overall market, and with upcoming rate hikes, it has a decent set up for running up to earnings.
This is play is a work in progress, so feel free to list your bullish and bearish cases. Let’s make some money.
Full disclosure - I have not taken a position yet. We have time for a good entry. Today’s a chop day so entering now would be extremely risky.
Nice post I’m really interested in banks, last earning they made really great returns from overdraft fees. Added Citi in November as I’ve been interested in getting some dividends for my long term portfolio from banks.
I did some light DD and I’m vacation till mid January so I’ll try to do a little more digging when I get back. Pretty much from what I remember JPM and C were my favorites based on value.
Definitely looking at financials as we approach April. I’ve been eyeing FAS (3X Russell 1000), it’s ~10% JPM.
Wanted to update this.
Barclay’s increased their PT on WFC to $62, which is most likely the reason for the 5% run up today. JPM and other finance seems to be running on this as well (in addition to the market overall being bullish).
ER is in a week and today and tomorrow’s close would confirm a trend reversal to the upside. If I were to play this, it’d be entering calls slightly otm or itm and dumping them before the ER.
For those who prescribe to my earnings call method, I watched JPM, C, and WFC today. Results are:
- Citigroup - Bullish
- Wells Fargo - Bearish
- JP Morgan - Inconclusive, however I would be prone to call bullish based on movement
I took a position on C. Good luck to anyone holding through tomorrow!
Yesterday JPM hit what I’d assume is a major level of support. Similar to MS’ situation where it bounced off the daily bottom bollingerw after some gap downs from earnings.
It MIGHT be the perfect opportunity to swing into some ITM calls that are a month or two out as long as the financial district holds up during this bearish outlook on the market. It’s tough to say this is a no-brainer though as most plays are starting to look like they have a safer downside.