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JPM looks like a decent short

JPM looks like it is going to cross below the  50DMVA on a day everything is rising.  I think JPM stock could linger here for a bit and then tank.  The stock has a huge exposure to the financial market and a giant market cap could make its size hard to maintain.  The stock has other reasons to tank with heavy exposure to the subprime market. http://biz.yahoo.com/ap/080227/jpmorgan_growth.html?.v=1  The bond market has slowed and could be slower with transactions declining.  The rate of profit should decline with private equity deals much lower going forward.  Multiple conflicts in interest on this new VISA ipo could raise some eye brows of investors, possible governments if the stock does trade lower after the intial public offering.  Financial transactions have to decline with the weakness in the economy shaking out weak hands.  Insiders have pocketed huge sums of money selling options they bought.  Resources of the world have been sold, traded, discovered, and transactions should decline.   The economy is generating multiple signs of weakness.  Heres a story posted on the Kirk Report about Steepest decline in housing prices accompanied by larges inflation.  http://www.nytimes.com/aponline/business/AP-Economy-Rdp.html?_r=2&ex=1361768400&en=a3cef69d09141f01&ei=5088&partner=rssnyt&emc=rss&oref=slogin&oref=slogin

February 26, 2008 - Posted by | Uncategorized

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