JP Morgan; Dead Cat in Bulls Clothing, Active Target of $21.71 (Video)

By
Christopher Diodato
– Posted on 06/14/2012Posted in: Analysis, Stocks

Christopher Diodato – TradersBase.com

I’ve heard this story all too many times.

  1. Company event drives stock down 20% or more
  2. Everyone screams “buying opportunity”
  3. Stock bounces slightly
  4. Without needed “smart money” demand, stock crashes.

 


 

I think I can sum this up in four symbols.  NFLX, GMCR JCP, ANF.  Plenty more if you feel it necessary to look for them.  The best part about studying market psychology is that while humans make technological progress all the time, they never make psychological progress.  We are still social and emotional beasts driven by fear and greed.  Take a look at the video below to see why JPM has an 80% chance of making new lows within the coming months.  In addition, I provide an extremely low risk trade to take advantage of the decline.

Make sure to view in full screen and HD!

 

 

Happy trading!

~Chris Diodato

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Christopher Diodato

About Christopher Diodato

I have been trading since my eighteenth birthday to pay for my college tuition. It was at first rocky, but now trading is my love, my work, and my passion. In addition to my experience in markets, I have passed all three exams to obtain the Chartered Market Technician (CMT) credential. I believe that I am the youngest to ever do so! I want to help out small investors to make some money on the side. There's a common notion out there that "big money" rules all. I disagree. With enough hard work and discipline, anyone can become the next Paul Tudor Jones!