Will It Soon Be Time To Short JP Morgan?


Notice the intermediate bearish cross of the 20 day MA which just crossed below the 50 day MA.

Now consider the action in the price of physical silver:


It appears that silver is about to make an intermediate bullish cross of the 20 day MA moving above the 50 day MA some time later this week.

So my question is how JP Morgan stock will hold up in face of the bullish developments in silver metal considering they hold close to 40% of all silver shorts at the COMEX?

JP Morgan to buy back $3 billion of its stock.



Comments

  1. BillDecember 5, 2012 at 5:25 AM

    Very large Cup and handle on that silver chart PW...

    ReplyDelete
  2. PW BaileyDecember 5, 2012 at 9:49 PM

    Indeed Bill. The physical metal is holding up much better than many silver stocks.
    I am starting to think the miners are going to take a bit more of a dive here than I initially thought. Still, intermediate term the shorts are in deep trouble.

    ReplyDelete
  3. AnonymousDecember 7, 2012 at 9:12 PM

    PW, can you add a link that shows J.P. Morgan's 40% short position on the COMEX.

    ReplyDelete
  4. PW BaileyDecember 7, 2012 at 10:37 PM

    Here is one source of my statement (mind you it is from 2009) - http://www.caseyresearch.com/gsd/edition/52.
    A more recent source suggests about 31% of the short silver contracts are JP Morgan's - http://www.prnewswire.com/news-releases/silver-short-position-could-cost-jp-morgan-billions-in-losses-says-nia-106058478.html.
    Whatever the exact figure is today I can not say, but can infer with a high degree of confidence that it is a substantial portion of the market.

    ReplyDelete

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