Will JPMorgan Get the “Fannie Mae” Treatment this Weekend?

JPMorgan Chase (JPM – NYSE)

Friday, September 27, 2013

Is JPMorgan Chase (JPM – NYSE)’s “thick green line” finally breaking down?

For years, JPM CEO Jamie Dimon has dismissed his critics as too poor or too dumb to understand his big picture. And so long as he could successfully paint JPM’s troubles as "tempests in a tea pot,” there was little anyone could about it.

But now, we have a report in hand from Graham Fisher’s Joshua Rosner warning that “Fortress JPM’s” recent history of significant regulatory failures demonstrate that shareholders are continuing to be called upon to pay for the firm’s inability to ensure an acceptable control environment. They even compared JPM to Fannie Mae! (You can read the whole report here.)

JPM isn’t even trying to deny its troubles anymore. Instead, JPM’s audit committee has admitted to mistakes that have locked the company into numerous legal and regulatory battles.

And on Thursday, U.S. Attorney General Eric Holder took CEO Jamie Dimon to the woodshed to discuss the cost to end investigations into JPM’s mortgage lending practices.

JPM 092713

Bottarelli Research Tip: We don’t see JPM getting shutdown this weekend. But, it is flirting with one of the most dangerous setups in Technical Analysis – a Head & Shoulders sell signal. If shares break support at the H&S “neckline” at $50, it’s a strong bet that JPM will double its recent losses, and drop to $42.50.

(Keep in mind that all technical forecasts are contingent on the mess in Washington right now. If they do “close the government” and/or default on the national debt, we will see massive cascading downside almost immediately. And if it drags on, we just might find ourselves thinking it’s 2008 all over again. Conversely, a “midnight deal” will jack up the market again.)

While the mess in Washington continues to play out, there are still great ways to make money. Just look at what Dan Levy did this week:

Bottarelli Research Professional Follows “Sharp Paper” To a 100% Winner: This past Tuesday, we hold you how Dan Levy was following a big player who bought 10,000 calls on a popular technology stock. Dan wrote, “I watched a customer come in and pick up over 10,000 calls that expire at the end of this week. Clearly, this buyer knows something is going to happen – and soon – so let’s follow this customer and ride the upcoming spike.”

The stock was Yahoo (YHOO – NASDAQ), and Dan was right on the money. Despite the market weakness, YHOO has soared, and Bottarelli Research Professional members hit a 100% winner.

Here’s what our members are saying about this trade…

I MADE 90%: Dan, great eye on your part on the sharp paper on this YHOO call! I made 90% on my calls. I think your trailing paper calls are the strongest part of your game and the best around anywhere. As a retail subscriber, I love getting the inside info on these trades. You are keeping the fine art of tape reading alive. Keep them coming bro. Many Thanks. — Kevin B.
BEST TRADE OF MY LIFE: Dan — I have a tiny pension and was beyond thrilled by your great call on Yahoo. Best trade of my life! Thank you does not adequately express my gratitude. — D.M.
A QUICK $50,000: A quick $50k, thanks buddy. — TY

You saw this trade happen from start to finish this week — right before your eyes. Those who acted on it, like Bottarelli Research Professional member T.Y, made $50,000. If you want to start making these returns, then you need to join Bottarelli Research Professional now. For all the details, click here.

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