Looking for longs? try JPM here

I know I'm scouring charts for some long trades right now, any savvy trader should be thinking twice about shorting after the move already today. Thats not a prediction per se on where we go from here, its just a matter of risk/reward at this point. One stock with a pretty solid technical picture right now is JPM aka JP Morgan Chase. Technically, this one has legs above $50, and I think any day you can get a $2 discount its worth taking a look at, esp for a short term bounce back towards its 52 week highs above $48. Long term? I see JPM above $55 April/May, and as high as $63-$65 by the end of 2011. So, given those expectations, and to take advantage of short term discounts, I'm looking at the April $49 calls which I just bought for 77 cents/contract. Just last Wednesday these were trading about $1.50 so i'm getting a good entry point to reward me for waiting for the stock to pull in before getting long. I've seen institutional blocks get bought in April, may and june 50 calls the last month or so, so April 49 is a strike I'm comfortable trading at this price. I'll start selling some if/when they get back above $1.00, and if that happens, I'd be pocketing 25% gains. For that to happen, I think the stock needs to get back above $47 to around $47.15/$47.20. That would only be a 50% retracement back to the high last week of 48.36, so even a short term retracement, not a sustained leg up, will result in nice profits here. HIGHLY recommend this trade. GL

http://www.finviz.co...a...amp;p=d&s=l



http://www.finviz.co...a...amp;p=d&s=l

Edited by vitaminm, 22 February 2011 - 02:47 PM.

Yes, but longer term view, potentially an inverse h/s breakout. NL is around today's close...

http://finviz.com/ch...=...amp;p=m&s=l