UPDATE – JPM – JPMorgan gapping up today.

We had the #banking stock featured here yesterday with our buy signal activated. JPM is a hold now as we’re in rally mode. Opening 3%+ We noted (in yesterday’s post) that a negated head and shoulders pattern can be a profitable trade to the upside. The context of the trade has shifted in the underlying supply/demand ratio – what was once negative has now reversed.

Also, short sellers covering their positions add fuel to the upside. The negated h&s pattern is one of the lesser known patterns and a favorite trade of ours to make.