JP Morgan Chase & Co. (JPM) Stock Forecasts

Summary

Market sentiment is becoming increasingly bullish (and it sure has taken its time as stocks bottomed two months ago). Sentiment was destroyed in early April as major indices, sectors, industries, and individual stocks fell off a cliff. The faster stocks go down, the quicker sentiment changes to extreme pessimism. Generally, the reverse is true. The faster stocks rally, the quicker the masses become extremely optimistic. But not this time. Even with the uptick in optimism, there are still a fair number of sentiment indicators that are only neutral or just slightly bullish about the market. That suggests that there is still fuel in reserve if and when the benchwarmers cave and become more constructive about equities. The five-day CBOE equity-only put/call (P/C) ratio has been between 0.54 and 0.57 during June, below the neutral line at 0.70. However, the 21-day P/C is still in a downtrend, which is bullish for stocks. The five-day can remain very low for months without tipping the market over as long as the 21-day remains in a downtrend. It's not until the P/Cs rise for a period of time that the market typically has trouble. The Gamma Exposure (GEX) has spiked to an extreme level and is at i