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JPMorgan: Taking Some Profits

Taylor Dart profile picture
Taylor Dart


  • JPMorgan is up nearly 70% since I entered the stock at $67.90 roughly 16 months ago.
  • The stock has been much stronger than the market, having advanced three times the market's pace in that period, and continues to be a leader.
  • Given the significant unrealized gains, I have exited one-fourth of my position at $113.00 for a 66% gain but continue to hold three-fourth of my position.

In Q3 of 2016 when the banking sector (XLF) continued to get talked down by most analysts due to its underperformance, one bank was hanging out just above a 10-year breakout level. The stock had shrugged off the majority of the weakness in the banking sector and was one of the only large-cap banks sitting within a hair of 52-week highs. This stock was JPMorgan (NYSE:JPM), and it's managed to significantly outperform the XLF over the past year and a half (70% gain vs. 42% gain). Given the orderly way the stock was trending up, I decided not to take any profits on the way up and to let the position ride but have finally taken off one-fourth of my position into strength a couple weeks ago at $113.00 per share. I continue to hold three-fourth of my position and see no reason to exit the remainder as the stock continues to act like a leader vs. the index and other banks.

Just over 16 months ago, I first wrote on JPMorgan as I was impressed by the way the stock was holding up and the setup it was exhibiting. I shared the below chart from October of 2016 with the stock having broken out of a one-year ascending triangle and showing commitment to the breakout thus far. The stock was sitting just below all-time highs near the $72.00 area, and often after multiple tests of resistance, these levels act as a magnet for price. Not only did the stock head to the $72.00 level in short order, it's since nearly doubled since moving through that key area on the long-term charts. Below are the before charts of the stock from a daily and weekly perspective, and just below there is the current after chart that shows the significant progress the stock has made since.

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I am/we are long JPM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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