• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Bank Earnings: JP Morgan vs. Goldman Sachs
Stock

Bank Earnings: JP Morgan vs. Goldman Sachs

by July 11, 2023
by July 11, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

JP Morgan kicks off earnings season this Friday, July 14th. Goldman Sachs does not report until next week, on July 19th. That is an auspicious day for us, as the July 6-month calendar range will be established. We will be able to see how each bank and banks in general might trend for the second half of the year.

The word on the street calls for mixed earnings performances. Investment banking revenue could be weaker. The recent stress test turned out well, with egional Banks still well underperforming the big banks.

A M&A between the two is on the table. But J.P. Morgan’s stock looks very different from Goldman Sachs stock. Besides revs from asset and wealth management, JP Morgan does lending-related operations, comprised of consumer lending, credit cards, and mortgages. Goldman Sachs provides mainly asset and wealth management. That has not been a highly profitable area of banking in 2023.

JP Morgan has over three times the amount of assets as Goldman Sachs and generates over three times the net revenue. So what could happen to each stock technically?

The daily chart of JP Morgan (JPM) is in a bullish phase, and has been for most of the year. However, it has not been impervious to corrections. In late June, we have one example where JPM tested the 50-DMA. On July 3rd, JPM made a new 52-week high and then gapped lower. Our Real Motion indicator shows a similar mean reversion around the same time. Plus, momentum is still sideways, but not as strong as price.

For the earnings, the stock must hold above 140. It also has to take out the reversal top high at 147.50 to keep heading north. 

Goldman Sachs (GS) is in a bearish phase. What this chart does not show is the higher lows at every price drop since June 2022. The low from June 28th, followed by the gap higher the next day, is the risk point going into earnings.

Zooming out, GS is not above the 23-month MA, while JPM is. Daily momentum on GS also had a mean reversion, the opposite of JPM’s, as GS is a bottoming one, while JPM is a topping one.

For earnings, should GS clear back over 330, then one can assume the investment banking side of their business is picking up. And that would make sense, as many money managers are throwing in the bear towel and starting to buy. In fact, if you are a contrarian, it could be that JPM’s credit card and lending side falters and the stock drops further into the end of the year. Meanwhile, it could also be that GS sees a boost from the investment side and works its way higher.

The best news? This happens right at the July 6-month calendar reset–a statistically reliable trading range edge. Follow the way the range breaks!

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish, Brad Smith and Diane King Hall discuss and project on topics like earnings, inflation, yield curve and market direction in this appearance on Yahoo Finance.

Mish reviews her first-quarter trades in this appearance on Business First AM.

Mish talks women in the trading space and covers a wide variety of ideas in this interview for FreeFX.

Mish runs through bonds, modern family, commodities ahead of PCE on Benzinga.

Coming Up:

July 12: Imran Lakha Trader Chats & Real Vision

July 13: TD Ameritrade

ETF Summary

S&P 500 (SPY): 440 pivotal and 430 support.Russell 2000 (IWM): 185 pivotal support.Dow (DIA): 34,000 back to pivotal resistance.Nasdaq (QQQ): 370 now resistance with 360 support.Regional Banks (KRE): 40.00-42.00 current range.Semiconductors (SMH): 150 back to pivotal number.Transportation (IYT): 250 pivotal.Biotechnology (IBB): 121-135 range.Retail (XRT): Nice move out of the base, but heading into some momentum issues if cannot continue with 66 resistance.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

You Might Also Like
  • First the Fed; Then Focus on Sectors Where Supplies Are Tight
  • The Ord Oracle May 16, 2023
  • GNG TV: “All About That Base(ing)” New Go Trends
  • Silver: An Undervalued Monetary-Industrial Hybrid
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Industrials Ignite as Bitcoin Blasts Off
next post
Republicans roll out new national voting law, warn Americans to watch out for Democrat deception

You may also like

Tracking the Three Signs of the Bear

June 8, 2024

S&P 500 Sectors Play Musical Chairs: How To Win the...

February 5, 2025

Oil, Chips and 4 Indices

April 13, 2023

Gold Is Doing Great!

May 17, 2024

Master the Market: Navigating Up Days and Down Days

December 5, 2024

It all Started with a Big Bang!

September 2, 2024

DP Trading Room: ETFs vs. Indexes

March 20, 2023

Post-Fed Rally Ignites Flurry of New Highs

March 22, 2024

Quit Trading Without This! Track Entries & Stops on the...

May 5, 2023

Stock Market Ends the Week Strong: Could It Spark a...

January 4, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Top 10 Stocks to Watch in...

    June 29, 2024

    Mega-Caps Weakening, More Trouble Ahead

    February 21, 2025

    Gilead’s Game-Changer: What You Need to...

    June 21, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here