World’s Smartest Banker Warns Investors, Banks To Kick Off Earnings Season, Bitcoin Hits $118K

To gain an edge, this is what you need to know today.

Earnings Season Ahead

Please click here for an enlarged chart of JPMorgan Chase & Co (NYSE:JPM).

Note the following:

• This article is about the big picture, not an individual stock.  The chart of JPM stock is being used to illustrate the point.
• The trendline on the chart shows a very strong move up in JPM stock.
• The chart shows JPM stock pulled back when RSI indicated the stock was overbought.
• Banks will kick off earnings season next week with JPMorgan Chase, Citigroup Inc (C), and Wells Fargo & Co (WFC) first out of the gate on Tuesday.
• JPMorgan Chase is the largest bank in the world by market cap.  Jamie Dimon has been the CEO of JPMorgan Chase since 2006.  Dimon is considered the smartest banker in the world.  Now, the smartest banker in the world is warning investors.  When the smartest banker in the world who also happens to be the CEO of the largest bank warns, prudent investors listen.  As usual, the momo crowd is oblivious.  As full disclosure, JPM is in our ZYX Buy Core Model Portfolio. 
  • Dimon is warning that the markets are underpricing the potential risk of higher interest rates.  Dimon said regarding the risk, “The market is pricing a 20% chance, I would price in a 40-50% chance.”  He also said the markets were being complacent in light of the tariffs.
• There are indications today that Dimon might be right.
  • President Trump is imposing 35% tariffs on Canada.
  • There is also a report that President Trump plans to impose blanket tariffs of 15-20% on countries that have not received tariff notifications.
  • Concern about tariffs is bringing in selling in the early trade.
• On the positive side, the Trump administration is touting that a deal with Europe …

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