Banks should hover around book value. Which is arguably a few percentage points near current levels (for JPM and GS, more so for the less banks). Barring a financial shock, the thesis should hold firm. Even though Spain bonds were a perceived issue today, the EU has over a trillion dollars as a firewall and well capitalized banks (thanks to the LTRO) to prevent a financial shock.
Tonight JPM got another reason why it will not stray too far from the mid 40s. JPM will focus its buyback below $45. So we have comfort in knowing JPM is giving support to the stock.
Generally, I think JPM will trade within a tight range around here, around mid 40s-to-50. (And I felt that way prior to the buyback comments.) Looking to add, if weakness push JPM to the 10SMA on the weekly.
No comments:
Post a Comment