Through the current COVID-19 pandemic, retail traders, investors, and financial firms have heard rumors of possible dividend suspensions from companies which have built a reputation on being profitable, maintaining a healthy balance sheet, and paying healthy dividend yields to investors.
With a 4.28% dividend yield and a $275B market cap, JP Morgan Chase (NYSE: JPM) is one of many companies which was recently rumored by financial professionals to be temporarily suspending dividends. However, yesterday the Federal Reserve itself stated that companies would be very unlikely to be allowed to suspend dividends.
As an active trader who also has investment experience, I suspect this to be a positive financial impetus in the eyes of financial professionals – dividend investors in particular. Not only do I see a positive financial incentive associated with JP Morgan Chase, but as an active trader, I also love the chart as of right now.
Indicated in green on the chart above you’ll see JP Morgan Chase’s 20-day simple moving average line, which is key support heading into today’s trading session. Simply put, should JP Morgan Chase remain trading above its 20-day simple moving average line, I’ll be interested in making a bullish trade and paying myself by the end of the day.
That said, while futures are indeed trading about 3% in the green, should markets and JP Morgan Chase make a green-to-red move, I’ll consider placing a short biased trade on JP Morgan Chase if the stock itself trades below its 20-day simple moving average line.
Getting ahead of hundreds or even thousands of retail traders and being able to pair a strong financial professional catalyst with a chart offering profit potential in both directions can eliminate a tremendous amount of “guess work,” which unfortunately, is something many retail traders struggle with on a daily basis.
And by the way, how about Apple from yesterday’s featured article? Following a catalyst which caught the eyes of financial professionals and a high probability chart from a technical analysis point of view, the stock itself outperformed the Nasdaq by a full percentage point. I doubt that was a mere coincidence 🙂
Yours for TrackStar trading,
Davis Martin
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.