Financial Stocks Show Relative Weakness | JPM Reverses

JPM JP Morgan Chart 1-9-19

JPM JP Morgan Chart 1-9-19

JP Morgan shares downgraded by Jefferies because the Fed could be done hiking rates

Jefferies downgraded J.P. Morgan Chase and a bunch of other banks because the Federal Reserve could be done hiking interest rates, which in turn, will hurt banks’ profitability.

“The biggest change to our ests. is from removing rate hikes from our models,” wrote analyst Ken Usdin, who also cited competition for loans and deposits, as well as concerns about credit quality, especially on products such as leveraged loans, as reasons for his change in outlook.

Rising recession fears could also weigh on the group.

cnbc.com/jp-morgan-shares-downgraded-by-jefferies

JPM traded into a bearish u-turn near resistance. This price action stalls the short-term rally and lays the foundation for profit-taking.

SPY ETF 60 Minute Chart 1-9-19

SPY ETF 60 Minute Chart 1-9-19

SPY ETF 60 minute charts shows price action nearing key moving average resistance.

Buying a higher opening today will most likely be a losing trade. I’m game planning for a decline and looking for entry signals to buy. This scenario increases the amount of profit potential after a decline.

U.S.-China Trade Talks End. Now High-Level Talks Can Begin.

BEIJING — Three days of trade negotiations between midlevel American and Chinese officials ended in Beijing on Wednesday afternoon with progress in identifying and narrowing the two sides’ differences but little sense of when they might reach a deal.

The trade talks could help clear the way for higher-level talks later this month, when President Trump attends the World Economic Forum in Davos, Switzerland. Vice Premier Liu He, China’s economic czar, is expected to come to Washington sometime after that.

nytimes.com/2019/01/09/us-china-trade-talks-beijing

About the Author

Pete is a full-time trader and mentor since 2000. Author of Equity Trader 101 and the Order Flow Method. He is dedicated to help self-directed traders to bust through the six-figure level.

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