I Like JPM Here into Earnings …

I think Q1 earnings reporting season could provide the market with a much more bullish backdrop for equity traders … one stock that reports this week is JPM, which leads the bank reporting season off when it reports this Friday before the open.

JPM’s chart suggests that the most likely short-term path after the report is to the upside …

JPM – 195 Minute Chart

The trend strength histogram has pulled back into the Chop Zone and looks like it could be signaling an upcoming expansion phase.  If that is what is going to happen, then the break higher by the relative strength indicator suggests to me that the stock wants to go higher if the earnings report is anyway half decent.  I am long call options that expire in May.

Cheers … Leaf_West

GS Update – December 14, 2017 …

My favorite Fast Money talking head, Dan Nathan talked about GS on today’s show so I called up my bigger broadening price pattern to see if I can see the bearish outlook that Dan sees …

GS – Weekly Chart #1

Price is back testing the upper resistance line of the broadening price pattern on the GS weekly chart … with the strength shown in that kick-off move, I would have to assume that price is going to push to new highs.  Question is whether or not we can go much higher if the overall market has any kind of a hiccup during early 2018.  I ask that because of my post yesterday that talked about the extreme trend strength warning on the S&P 500 Index (the first since July 1995).

GS – Weekly Chart #2

All of GS’s weekly chart indicators are pointing higher …

GS – Weekly Chart #3

And it looks like the R/S is about to break out of a consolidation pattern … I love when it does that!!

GS – Weekly Chart #4

I have an audio alert set to warn me when the R/S indicator makes a break higher …

Cheers … Leaf_West