By: Thomas Kee

Chief Investment Officer, Stock Traders Daily -  Rule-Based Trading Strategies

(La Jolla, CA) President Obama has begun to detail his overhaul, and many investors fear the impact those changes may have on financial institutions going forward.  When fear or greed enter a sector, investors stop paying attention, and start letting emotions take over.  That is where my efforts add value.  I bring the situation into clear light, by offering concise plans for the companies in question.  These plans incorporate risk controls.  The result is a straightforward, unbiased, and unemotional look at the companies I review.  These might include warnings and opportunities.  However, the opportunities may be on both the short and long sides of the curve.  When the following analysis is reviewed, understand, the comments are based on our dynamic reports, data adjusts over time, and updates are necessary.  Updates are available to everyone by using the links in each of the commentary below.

I will be specific when reviewing the first of these five stocks.  This will provide a guide for understanding the reports for the other companies as well.  Please read the analysis for JPM first.  Then, review the reports for the other companies to obtain a real time understanding of those.

JP Morgan (NYSE: JPM) When reviewing the report for JPM, I first compare the current stock price to the data provided in the summary table in the report.  The summary table is an array of important inflection points, also known as support or resistance parameters.  I call them inflection, because if support breaks it turns into resistance, and vice versa.  The relationship between these data and the current price provide actionable plans.  These are detailed in the report. 

There are two important catalysts apparent when reviewing the chart patterns of JPM, and the corresponding report that reflects those charts.  First, longer term resistance has not been tested.  Second, mid term support is being tested.  Combined, this presents both an opportunity, and a warning. 

The most obvious is, if mid term support holds, longer term resistance is likely to be tested.  That translates into a buying opportunity with mid term support as the risk control.  I always review the longer term data in the summary table in the report first, and usually focus on longer term parameter #3.  That is longer term resistance.  Usually, it gives me an upside target.  For JPM, that is exactly what it provides.  However, these dynamic reports are a series of if-then scenarios, so this seemingly bullish observation includes a qualifier.  This is where the risk controls come in.  For example, longer term parameter #3 will only be tested if support holds.

In the mid term data I have identified support as mid term parameter #1.  According to rule, if support holds, a test of resistance is likely, but if support breaks, further declines lie ahead.  With mid term parameter #1 acting as support, if it holds, I expect a test of longer term resistance.  Included in the report are concise plans, with detailed risk controls.  The first step should always be to review the longer term data, then the mid term data, then the near term data.  In doing so, plans like the one outlined here become obvious.

The read suggests that JPM will increase to longer term parameter #3 if mid term parameter #1 holds.  This is derived by comparing the current price to the data table and a 6-month chart of JPM.  The review takes about 3 minutes.  However, real time trading plans are provided as well, so the work has already been done.

Trading plans exist for active traders and longer term investors alike.  However, the longer term analysis I have referenced here should be important to all.  If mid term support holds, the stock is likely to reverse higher nicely and test longer term resistance.  Otherwise, JPM is heading down.  The report is simple, straightforward, unbiased, and historically very accurate.  Review it by clicking the link above.

Wells Fargo (NYSE: WFC) We have prepared a detailed analysis of WFC for investors to review.  This is a dynamic analysis, and it updates in real time.  Use the example above to understand how to use this report.  We also offer personalized assistance.  If you need help with the report after you read it, please send an email to neal@stocktradersdaily.com.  We will review it with you, like we did JPM above.

Goldman Sachs (NYSE: GS) We have prepared a detailed analysis of GS for investors to review.  This is a dynamic analysis, and it updates in real time.  Use the example above to understand how to use this report.  We also offer personalized assistance.  If you need help with the report after you read it, please send an email to neal@stocktradersdaily.com.  We will review it with you, like we did JPM above.

Morgan Stanley (NYSE: MS) We have prepared a detailed analysis of MS for investors to review.  This is a dynamic analysis, and it updates in real time.  Use the example above to understand how to use this report.  We also offer personalized assistance.  If you need help with the report after you read it, please send an email to neal@stocktradersdaily.com.  We will review it with you, like we did JPM above.

Bank of America (NYSE: BAC)  We have prepared a detailed analysis of BAC for investors to review.  This is a dynamic analysis, and it updates in real time.  Use the example above to understand how to use this report.  We also offer personalized assistance.  If you need help with the report after you read it, please send an email to neal@stocktradersdaily.com.  We will review it with you, like we did JPM above.