March Market Madness: JP Morgan (JPM)

March 18, 2011 9:55 am

As we mentioned earlier, this month we are going to be looking at the stocks that make up the DJIA. . Next up JP Morgan (JPM).

To understand the inner datapoints of money-center banks these days would be almost impossible. All of the enhancements from account rule changes and the FED doing everything to enhance their overall balance sheets, has created a target that is hard to pin down. Winston Churchill’s quotation, made in a radio broadcast in October 1939: “I cannot forecast to you the action of Russia. It is a riddle, wrapped in a mystery, inside an enigma; but perhaps there is a key. That key is Russian national interest,” best describes the bizzare relationships of the FED and the banks….and the banks to the economy.

Either way, this stock score low due to technical considerations. Obviously the markets are doing a terrific job of liquidating the large-caps these days. It has become a necessary condition as the Japan incident becomes more of a concern by the day.

But, don’t rule out something outlandish that will come from the FED. As an example, just in the nick of time, the announcement was made that several banks will now be allowed to start or increase dividends due to their clean bill of health from the (un)stressful stress tests. Of course then there is the other side that throws shoes now and again. Think Dodd/Frank…

Use the information here at your own risk.

JPM 20110317

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