JPMorgan trading losses...$9 billion, Ross Stores Inc. -8% since Jim Cramer Buy

JPMorgan reports trading losses may be as much as $9 billion

That may explain why despite the recent strong increase in the stock price, the charts didn’t trigger a change in the previous Sell Short signal.

For full article: JPMorgan

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Ross Stores Inc. dropped by more than 8% since Jim Cramer ranked it a Buy

However, the technical analysis used to identify the trends here shows the opposite; a downtrend is close to being confirmed by tomorrow and if it happens it’ll be included in the weekly update.

Jim Cramer made the following calls on June 20th, 2012.

Friday Updates, Always Good... even with a slight delay :)

When driving a car you apply the appropriate amount of pressure on the break when turning or changing direction in order to safely arrive at your destination. In other words you control the risk of your vehicle crashing and incurring losses.
The same concept applies to trading when riding a trend; always use Sell/Buy Stops whenever a trend appears to be reaching a turning point. That point can result in a reversal of the previous direction or simply be a temporary pause in that recent or long trend.

On Friday the following Buy to Cover were triggered but the stocks will be monitored closely because of their high probability of downtrend.

Buy to Cover triggered: Gilead Sciences Inc. at $50.52 and Pfizer Inc. at $22.77.

A Buy Stop has been identified for Gap Inc. at $27.36 and the previous Buy to Cover on General Electric Co. remains at $20.

All other short and long positions are still valid and can be seen below.

		Buy		Sell		Short	Buy to Cover		22-Jun	Gain/Loss
US	Date		Date		Date		Date
Google Inc					5/4	$596.00			$571.48	4.29%
Sirius XM Radio Inc					5/4	$2.16			$1.89	14.29%
Cisco Systems, Inc.					5/4	$19.12			$17.13	11.62%
Oil Crude (Sweet)					5/4	$98.49			$80.03	23.07%
JPMorgan Chase & Co.					5/11	$36.96			$35.99	2.70%
General Electric Co.					5/11	$19.01			$19.81	-4.04%
Avon Products, Inc.					5/11	$20.19			$15.50	30.26%
Pfizer, Inc.					5/25	$22.13	6/22		$22.77	-2.81%
Sprint Nextel Corp.	5/25	$2.62							$3.29	25.57%
Gap Inc.					6/1	$25.26			$27.36	-7.68%
Gilead Science Inc.					6/1	$48.67	6/22		$50.52	-3.66%
CANADIAN
Royal Bank of Canada					5/4	$54.96			$51.96	5.77%

Does Technical Analysis Predict the Future?

Royal Bank of Canada (RBC)
This is the only Canadian bank for which a Sell Short signal was triggered almost a month ago and since then no sign of a reversal has been observed. The technical charting analysis used here is based on the overall market sentiment and behaviour reflected in price fluctuations and trading volumes.
Strangely enough today Moody's downgraded 15 global banks and RBC was the only Canadian bank downgraded.
Do we predict the future? No I don't think so. Unlike fundamental analysis, technical analysis is a sort of brainstorming, it's like wikipedia which is probably the world best encyclopedia. It reflect the sentiment & attitude of all investors in the market toward a specific stock. The news comes in after; it interprets and communicates the sentiment and attitude in plain language. Sometimes that news seems to be based on specific information on the company, which in most cases is available to the public.
That is one of the main reasons why technical analysis appears to be predicting the future, when in facts it just tells us what is taking place in charting language before the news publishes it in plain language for all to understand.  

All 12 Short positions in red and single Long in Green

Efficiency of a true technical trend trading strategy

 

Weekly Friday Update

Risk management is always a component of any successful trading strategy. In the technical strategy used here, for some previous short positions a Buy to Cover signal has been triggered on the following stocks:

- General Electric, Buy to cover at $20

- Pfizer, Buy to cover at $22.61

- Gilead Sciences, Buy to cover at $50.29

Even though Eldorado Gold and SNC Lavalin have recently been getting stronger, they still haven’t been able to confirm an uptrend.

Below is the weekly update on the positions taken so far

		Buy		Sell		Short	Buy to Cover		June 15	Gain/Loss
US	Date		Date		Date		Date
Google Inc					5/4	$596.00			$564.46	5.59%
Sirius XM Radio Inc					5/4	$2.16			$1.85	16.76%
Cisco Systems, Inc.					5/4	$19.12			$17.09	11.88%
Oil Crude (Sweet)					5/4	$98.49			$84.03	17.21%
JPMorgan Chase &Co					5/11	$36.96			$35.03	5.51%
General Electric Co.					5/11	$19.01			$20.00	-4.95%
Avon Products, Inc.					5/11	$20.19			$15.79	27.87%
Pfizer, Inc.					5/25	$22.13			$22.61	-2.12%
Sprint Nextel Corp.	5/25	$2.62							$3.09	17.94%
Gap Inc.					6/1	$25.26			$26.73	-5.50%
Gilead Science Inc.					6/1	$48.67			$50.26	-3.16%
CANADIAN
Royal Bank of Canada					5/4	$54.96			$51.24	7.26%