JPM Max Pain At 6 Month Highs

Tyler Durden's picture


While we can argue over which exact position Iksil and his crew had on, the widening in IG9 10Y spreads post-Dimon signals an unwind of epic proportions continues. It seems the mainstream media has grown tired of discussing skews, basis, curves, tranches, and tail-risk but for those who care about the reality that JPMorgan faces - we note that the credit index most closely tied to the CIO's office debacle continues to push wider. Today sees the spread at six-month wides (up a hulking 33% since Dimon's mea crapa). Perhaps this helps explain why JPM just can't get a bid (or hold onto one even after last week's ECB/Fed print rumors) as its stock's price hovers just in the red YTD (with a $32 handle).


Source: CMA

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Wed, 05/30/2012 - 13:11 | 2476288 mayhem_korner
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I predict...pain.

(Mr. T/Clubber Lang, Rocky III)

Wed, 05/30/2012 - 13:14 | 2476304 Tsar Pointless
Tsar Pointless's picture
Pain is ready, pain is waiting
Primed to do it's educating
Depeche Mode "Dream On"
Wed, 05/30/2012 - 13:18 | 2476331 Assetman
Assetman's picture

"Awesome"... hehe.

Wed, 05/30/2012 - 14:31 | 2476664 Problem Is
Problem Is's picture

I predict...

Uncle Bennie buys JPM's junk via a confidential liquidity program for TBTF/Systemically Important banksters...

Wed, 05/30/2012 - 16:11 | 2477157 TheTwoJohns
TheTwoJohns's picture

Weinstein is gonna get loaded.

Wed, 05/30/2012 - 13:16 | 2476321 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Poor Jamie's bank is being sold short.  Hope he feels like someone who was long silver for some of the selloffs he created.

Wed, 05/30/2012 - 13:18 | 2476338 williambanzai7
williambanzai7's picture


Wed, 05/30/2012 - 13:29 | 2476385 ACP
ACP's picture

Shut up Jamie before I have to kick your ass again!

Wed, 05/30/2012 - 13:50 | 2476471 El Oregonian
El Oregonian's picture

That frigg'in head of his would fit perfectly between them, hell, who's to say that they're not related?

Wed, 05/30/2012 - 14:36 | 2476688 Problem Is
Problem Is's picture

Timmay gave you -1 because that is his Uncle Jamie...

Bevis and Butt-head gave you -2 for associating them with Jamie The Clown...

Wed, 05/30/2012 - 13:14 | 2476306 slaughterer
slaughterer's picture

With the information available through ZH about this whale trade backfire, it is amazing that JPM continues to trade at 1.4 BV.  The stock should be trading in the lower $20s at this point.   

Wed, 05/30/2012 - 13:39 | 2476422 Doña K
Doña K's picture

Book value is rehypothicated. Real value is negative.

Sold some old furniture and I had to pay the guys to remove it from my house. Same concept.

Wed, 05/30/2012 - 13:34 | 2476408 janus
janus's picture

i'll see your cultural reference and raise you one:

just mark (to market) it eight, smoky.

Wed, 05/30/2012 - 13:13 | 2476294 MsCreant
MsCreant's picture

Fuck off and die JPM.

Edit: This is blatant pandering for greenies.

Wed, 05/30/2012 - 13:15 | 2476307 fuu
fuu's picture

You'll get them.

Just Putrify More bitchez!

Wed, 05/30/2012 - 13:17 | 2476318 BlueCollaredOne
BlueCollaredOne's picture

They need to throw in the damn spiderman towel


Wed, 05/30/2012 - 14:13 | 2476516 Dr. Engali
Dr. Engali's picture

Lmao. By greenies do you mean boogers?

Wed, 05/30/2012 - 13:14 | 2476305 Joshua_D
Joshua_D's picture

Die JPM scum.

Wed, 05/30/2012 - 13:14 | 2476308 derek_vineyard
derek_vineyard's picture

if i was told the 10 year would be at 1.62% then i'd have assumed the spx would be at 1000 or less

Wed, 05/30/2012 - 13:21 | 2476351 junkyardjack
junkyardjack's picture

Seriously like if the market does crash are treasuries just going to negative?  I really don't understand it.  Market is still near its high, seems like its going to just correct 20% one day to even out.

Wed, 05/30/2012 - 13:25 | 2476366 derek_vineyard
derek_vineyard's picture

junk,    TIPS are negative all the way to 20 year duration to the government reported CPI index (which is understated and magnifies the negative yield)  

FDIC only covers 250K, so APPL and others must store cash in treasuries, because they are not stupid enough to plow this money back into the economy and risk it all

scary times

Wed, 05/30/2012 - 13:45 | 2476442 NotApplicable
NotApplicable's picture

And they know not to buy PMs after watching Buffet try his silver play back in the day. Because if he can get bitch-slapped by TPTB, anyone can. Besides, just look at the sweetheart deals he's gotten since (though many will once again require fedgov backup, of course).

Wed, 05/30/2012 - 13:39 | 2476426 Dr. Engali
Dr. Engali's picture

I would have thought the whole thing would have exploded at these levels. The thirty year is trading at 2.71 simply amazing.

Wed, 05/30/2012 - 13:15 | 2476309 junkyardjack
junkyardjack's picture

Maybe they can hedge their position by going long FB....

Wed, 05/30/2012 - 13:18 | 2476335 eclectic syncretist
eclectic syncretist's picture

I can't decide which one I like better,

FB = Falling Brick

FB = Fleeced Bumpkins

FB = Fried Bankers

FB = Fraudulent Bullshit

Wed, 05/30/2012 - 13:27 | 2476376 derek_vineyard
derek_vineyard's picture

FB used to mean 'fucking bernanke' as in europe will pull a FB

Wed, 05/30/2012 - 13:15 | 2476310 onis_uk
onis_uk's picture

I will relesh watching every second of that companies demise ! :o)

Wed, 05/30/2012 - 13:29 | 2476384 derek_vineyard
derek_vineyard's picture

you don't idolize zuckenburger?   he's a genius and apple was sent by angels

Wed, 05/30/2012 - 13:15 | 2476312 pissing_excellence
pissing_excellence's picture

Alice Kingsley: I've been shrunk, stretched, scratched and stuffed into a teapot!

Wed, 05/30/2012 - 13:15 | 2476314 slaughterer
slaughterer's picture

Guess we have the Bear Stearns/Lehman candidate for 2012 in our sights.

Wed, 05/30/2012 - 13:17 | 2476324 fuu
fuu's picture

Can you warn us if you go in at $5?

Wed, 05/30/2012 - 13:26 | 2476365 slaughterer
slaughterer's picture

I am hoping to pick up JPM at the same price Goldman gets them during one óf those Treasury-moderated weekend emergency sessions: $2.

The whole question is what happens to the infamous JPM PM portfolio once JPM starts going belly up.  Will Jim Rogers scoop that porfolio up for a few Spiderman towels?

Wed, 05/30/2012 - 13:34 | 2476403 fuu
fuu's picture

All I know is you picked the bottom on BAC perfectly.

Wed, 05/30/2012 - 13:41 | 2476430 slaughterer
slaughterer's picture

Will let you know.  But it still seems too early to buy JPM.   Wait until the $32.50 bottom feeders from last week start capitulating    

Wed, 05/30/2012 - 14:46 | 2476747 Alea Iactaest
Alea Iactaest's picture

Volume that day was not exceptional, particularly at $32.50. Just kind of bled into the close then gapped up a little the next morning after the patient got a dose of hopium.

Wed, 05/30/2012 - 14:03 | 2476537 RoadKill
RoadKill's picture

Everyone knows Goldman wants MS not JPM. JPM will be merged with Citi and the US gov will own all the stock.

These idiots should have raised capital a month ago. If they had they'd be able to pick up Barclays, CSFB, UBS etc... All for pennies on the dollar and Government gaurantees.

Wed, 05/30/2012 - 13:17 | 2476323 williambanzai7
williambanzai7's picture


Wed, 05/30/2012 - 13:42 | 2476435 franzpick
franzpick's picture

JPM's CIO prop bet loss is the camel's nose entering the derivative tent: the coverup does not hide the $400T disaster hiding in plain sight, and I hope the camel soon has a defining sneeze attack.

Wed, 05/30/2012 - 14:08 | 2476556 Bastiat
Bastiat's picture

Never stand behind a sneezing camel.

Wed, 05/30/2012 - 14:47 | 2476754 Alea Iactaest
Alea Iactaest's picture

Sandy Weill approves of that message, WB7.

Wed, 05/30/2012 - 17:31 | 2477433 ArrestBobRubin
ArrestBobRubin's picture

After all, Sandy and Bob Rubin started it all. Then these 2 senior members of La Kosher Nostra wisely got themselves out of the spotlight. Get a load of this f*cking shyster...,28804,1877351_1877350_1877329,00.html

"Who decided banks had to be all things to all customers? Weill did. Starting with a low-end lender in Baltimore, he cobbled together the first great financial supermarket, Citigroup. Along the way, Weill's acquisitions (Smith Barney, Travelers, etc.) and persistent lobbying shattered Glass-Steagall, the law that limited the investing risks banks could take. Rivals followed Citi. The swollen banks are now one of the country's major economic problems. Every major financial firm seems too big to fail, leading the government to spend hundreds of billions of dollars to keep them afloat. The biggest problem bank is Weill's Citigroup. The government has already spent $45 billion trying to fix it"

And that's from f*cking TIME.


Wed, 05/30/2012 - 14:08 | 2476558 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Brilliant William!  Could be that the pricks have finally pricked the credit bubble!?  "Look out below" for almost all assets particularly paper and digital assets.  Metals will tumble too in nominal terms but NOT in purchasing power.

I am Tuco

Wed, 05/30/2012 - 13:17 | 2476325 BlandJoe24
BlandJoe24's picture

Tyler keeps using the term "handle"  (ex from post above: JPM with a "handle at $32), but i don't understand what it signifies or how it's useful for placing a trade.  Would much appreciate explanation  - thanks!

Wed, 05/30/2012 - 13:19 | 2476341 junkyardjack
junkyardjack's picture

Handle just means the dollar amount so when it is anywhere in $32 dollars ($32.01-32.99) its a $32 handle.  Just finance jargon not a trade entry

Wed, 05/30/2012 - 13:20 | 2476345 wisefool
wisefool's picture

its usualy the number infront of the decimal point. $32.XX share.

Wed, 05/30/2012 - 13:20 | 2476346 williambanzai7
williambanzai7's picture

I think he means can't handle the truth ;-)

Wed, 05/30/2012 - 13:23 | 2476358 Assetman
Assetman's picture

The term "handle" refers to an approximate term, since the price of JPM equity keeps on finding new levels. 

A $32 handle suggests that JPM has currently seen some trades below $33 (say $32.98)... and it might go lower (or less likely, higher) pending incremental information.

You're welcome.

Wed, 05/30/2012 - 13:39 | 2476389 BlandJoe24
BlandJoe24's picture

Thanks everyone.  Could he also perhaps indicate the "cup and handle" pattern that can occur in a chart?  see: 

It seems to fit the JPM chart in the post above.  In your experience, has it had much relevance? 

Wed, 05/30/2012 - 13:51 | 2476476 Alex Kintner
Alex Kintner's picture

It apears more to resemble the 'Teabags on Chin' pattern.

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