JPM has high uncertainty; speaker takes a sell position despite record highs.

We have JPMorgan Chase stock as your first choice. What do you see in JPMorgan Chase right now? Uncertainty. A lot of uncertainty. Not only JPMorgan, but the entire financial services sector (XLF) has surprisingly seen strong buying activity.

With regard to JPMorgan specifically, I am less interested in the technical aspects. I know the stock is currently at a record high, but I will simply take a sell position. On November 20th, I will buy put options at 340.

I will sell put options at 330 for them. This is a price difference of $10, executed at a cost of $2.90.

Looking at the chart for JPMorgan Chase, momentum was certainly in its favor throughout the summer, as Don explained. We are less than $10 away from those highs recorded over the past 52 weeks.

The earnings pushed us past our previous highs seen near 344. From there , the 366.50 point was the highest level we reached . We drew a short-term downtrend line in blue and it has been broken.

Now, the point to watch here is the white trend line that connects our lowest point near 344 with our most recent subsequent lows . There are horizontal levels to watch. Clearly, 366.50 stands out as the highest of the previous levels, while the relative lower levels for the decline come near 350, 344 and 335.

Those levels could be potential support if things start to fall back, and if we start to see more downward movements. Therefore, our moving averages show a crossover here. We have our exponential moving averages, dark blue for 5 days, and greenish-blue for 21 days.

Those points converge at approximately the 356 or 357 level, which also generally aligns with our white trend line . Therefore, this gives us a noteworthy potential breaking point here.

If this level is broken, it could open the door to testing our 63-day golden exponential moving average at the 344 level. The relative strength index is trending upwards here. We are above the 50 midline, but you could also say there is a downtrend line giving us this triangular shape.

Therefore, look for a breakout of either trend line to provide more clarity on the direction the price might take . Our volume profile in this case shows a node or concentration of trading activity here between 353 and 358 .

If we slip below that point, we have another area of activity around that area, approximately between 330 and 337 . There is not much to stop our descent until we reach this area, which matches our defined range here and our previous highs.

Well, JPMorgan's stock is now at 358.79. This is about $8 lower than those high levels we saw earlier this year.