JPMorgan beats on record 2nd-quarter results, profit jumps 18%
The BusinessInsider headline above says volumes about JPMorgan and banks in general. With profit growth of 18% surely the banks can help lead the S&P 500 higher into summer right?
Well, JPM did follow-through from support levels that marked a decision point for us. Had JPMorgan lost the 104 (+/-) zone we would have called it a day and exited our initial long position.
The weekly chart shows the previous second half results, from July reporting until the end of year results. In most case the stock and banks in general performed as anticipated. Banks usually do well in ht second half.
Given the 18% profit gains, we’d expect JPMorgan to continue finding interested parties as it rises above resistance levels at 112 and 114. We’d like to add to our position if and when these levels are achieved.
Intrinsic value based on future earnings supports a appreciate into year end. JPMorgan trading above 115 is possible given current data and expected performance in the second half.
With futures lower this morning, we’d anticipate an opportunity on pullbacks to support levels. The persistent “trade war” rhetoric out of Washington is still weighing on the markets but usually dissipates quickly.
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