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The J.P. Morgan Barometer Tells Traders Everything They Need To Know (NYSE:JPM) (NYSE:BLK) (NYSE:CS) (NYSE:DB)

Posted by Aadil on August 24, 2011 at 6:20pm
The major stock market indexes have certainly been volatile during the month of August. The recent stock market swings in both directions have been outright violent at times. Many traders and investors have had to even step back and allow the markets to calm down at times before trying initiate a long or short position. There has been one stock that has foretold the action in the major stock indexes, this stock is J.P. Morgan Chase & Co. (NYSE:JPM). When JPM stock trades higher on the day the major stock market indexes trade higher, when JPM stock declines the major stock indexes seem to decline. After all, this is a banking crisis, so why not follow the most important bank in the United States and arguably the entire world. This morning, JPM stock is trading higher by 0.23 cents to $35.02 a share. Traders can watch for short term intra-day resistance around the $35.50 area. Should the important financial giant decline during the session the stock will have intra-day support around the $34.00 level. 

Other important financial stocks that traders should follow closely include Blackrock Inc.(NYSE:BLK), Credit Suisse Group AG (NYSE:CS), and Deutsche Bank AG (NYSE:DB). These financial institutions are some of the most powerful in the world. Each of these stocks can lead the markets at any given time, however, JPM stock is the most important.
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Comments

  • L Levin August 25, 2011 at 7:13am
    He is saying that JPM has a beta close to 1, I wonder how accurate this is?
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