This sector was written off by investors just a few months ago, but now it surprising its critics.
The reason this sector is rallying is because China is opening up access to their $44 trillion financial sector to U.S. financial firms. These kinds of change happen slowly, but then the stocks they affect catch fire quickly!
Investors haven’t really focused on this yet, so the move in these stocks is just beginning!
Today’s company is one of the few major U.S. firms that have been approved to be able take control of local Chinese joint ventures.
JP Morgan Chase (JPM).
Not only do you get the premier U.S. bank when you own this company, but now you also get a leader in pushing into a big opportunity in China.
This is big picture, long-term play.
There will be plenty of short-term opportunities too, but for this article I’m going to focus on a setup that has a wide stop and no target because if JPM moves to all-time highs, the next step could be to double.
However, if the general market tops out soon, then you want to be protected. Therefore, the stop for this trade is under $111.50.
The entry price is $114.50 and $118.50.
The current short-term momentum is up so as long as that stays in tact (over 114.50) the entry looks good.
The top end of the range of 118.50 is simply to control the level of risk considering the $111.50 stop.
Keep an eye on this one.
When the China story gets more attention, this bank could rally like a hot tech stock!
Rick Nartarian, Chief Investment Officer
The American Investor Daily