JP Morgan Stock (JPM) Soars to Record Highs: “Elliott Wavinization” in Action

Coming out better than when you went in. That’s every trader’s goal. And it starts with an objective, Elliott wave plan. Example: Big Board veteran JP Morgan Chase (JPM)

When it comes to eccentric billionaires, founder of the largest U.S. investment bank, John Pierpont Morgan Sr., takes the cake. Morgan was a 6-foot-2 tall (well above the 5”7” average height of men during his time), broad-shouldered, mustachioed tycoon who smoked over a dozen giant Cuban cigars a day, opted last minute not take his pre-reserved trip on the (then) newly christened Titanic, and had a knack for resuscitating beleaguered businesses so often the term “Morganization” was coined to describe the successful reorganization of a failing company.

J.P. had dumb luck for averting catastrophe, like the Titanic. But he had an innate gift for spotting opportunity overlooked by others.

For traders, Lady Luck is a fickle mistress. Better to concretize a method for “morganizing” one’s investments – such that when you leave the markets you trade, you’re in a healthier spot than when you arrived.

That’s every trader’s goal. And according to mainstream economic wisdom, the way to achieve it is to follow the lead of market news. This is known as “fundamental” analysis, and briefly put, it says good news will cause prices to rise while bad news will trigger drops.

This sounds great in theory. It just doesn’t play out as often as traders would like.

Take for no random example the performance in J.P. Morgan’s namesake, Big Board veteran JP Morgan Chase (ticker symbol: JPM). In late 2023, a “fundamental” bomb was dropped on the investment bank; on October 27, J.P. Morgan’s incumbent CEO sold 1 million of his own shares to the tune of $141 million.

This was the first time the bank’s leader unloaded shares in his 18 years at the helm.

Suffice to say, the move forced him into immediate damage control, taking to social media to assure investors of his continued belief in “the company’s prospects” (Reuters, Oct. 27), explaining how the dump was simply in preparation for retirement a few years down the road.

Still, as far as “fundamental” events go, a 9-figure withdrawal from one’s own company has bearish optics.

But, from an Elliott wave perspective, JPM’s optics looked bullish. On November 16, our Trader’s Classroom presented a labeled price chart of the stock and showed prices at the start of a powerful, third wave advance. From the Nov. 16 video lesson:

“The bottom line is as long as that low holds at 135.19, this count is valid and preferred status and JP Morgan can potentially just take off to new highs here. I like it higher.”

And, that’s exactly what happened. JPM took off smok’n like one of J.P.’s stogies. On March 7, Trader’s Classroom revisited the stock to outline the near-term course. JPM’s rally “should keep going while support at 179.47 holds.”

And, on March 28, JPM hit lifetime highs before turning down.

After three weeks of weakness, on April 17, Trader’s Classroom showed a newly updated chart of JPM and warned the drop was “getting a little bit large” and must bottom soon to keep the bullish trend on track.

From there, JPM resumed its upside and has been in rally mode since.

Another of J.P. Morgan’s favorite pastimes was digging for precious gems. There’s one named after him, “Morganite.”

For traders, one tool enables you to uncover precious set-ups in the markets you follow AND set clear price levels to help manage risk – Elliott wave analysis. Or, as J.P. might put it, “Elliott Wavinization.”

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