Like the New England Patriots, nobody ever feels sorry for JPMorgan Chase (JPM, $56.14, up $0.07) but sometimes injuries and ruthlessness are just too hard to ignore and make you want to pull for them.
We have always thought of JPMorgan as a solid company with a super CEO that gets it. We have done business with JP, traded options on the stock over the years, and often love to hear what the Head Chief always has to say.
We would have loved to have been a fly on the wall after Jamie Dimon got the word his company would have to pay another possible fine to settle ongoing litigation matters. JPMorgan is now paying the price for its relationship with convicted Ponzi scam artist Bernie Madoff and will shell out roughly $2 billion in penalties for “turning a blind eye”.
The settlement would include more than $1 billion in penalties to resolve the criminal case and the other $1 billion will be imposed by the zombies.
The bad boy fines for JPMorgan has now reached $16 billion following the recent $13 billion settlement with the government over “bad mortgage securities” and another billion for the “London Whale” shenanigans. At least a portion of this settlement will go to the victims that got “Madoff-ed” who was sent to the joint in 2009 for bilking thousands of investors and is serving a century-and-a-half prison sentence.
As far as the market, the indexes are dancing with our near-term downside targets and the second half of trading could be an important tell on how tomorrow and next week will play out on Wall Street. Remember, we said the suit-and-ties would be lulled to sleep this week and next and the action is playing out just like we have planned.
While we don’t have new trades at the moment, we could this afternoon in the final hour of trading so please make sure you hang out with us the rest of the session.
As we make the turn, the Dow is down 95 points to 15,748 and has broken below 15,800 while the S&P 500 is off by 5 points to 1,776 and is right at our 1,775 pivot target. The Nasdaq is trying to hold its own but is lower by 2 points to 4,002 and the Russell 2000 is UP 3 points to 1,104.
We have some updates on our current trades so let’s go hit the Members Area but remember, stay locked-and-loaded as we could have some fireworks in the final hour of trading.