Just As I Suspected

JPM's earning beat, sort of. Remember in yesterday's theory post, it wasn't important what JPM really did, what they will do moving ahead, what is important is to spin the headline into a beat to lift the market as no other major companies are reporting that would produce a drag, this way many of the stocks that are inverse ETFs or shorts that we saw yesterday that looked to be in need of a pullback for good positioning, will get exactly that. When other non-fnancal companies report, the earnings should be thoroughly disappointing, so today was an ideal day to lift the market and spin JPM's earnings into a solid beat.

The fact is JPM missed slightly on revenues, coming in at $25.22 billion vs consensus of $25.42 billion, but they beat handily on EPS at $1.28 per share vs consensus of $1.16 per shares (on higher revenue!) So how did they do that?

From the WSJ: "The company’s bottom line again benefited from it setting aside sharply less to cover potential loan losses."

So it came down to accounting gimmick, but remember what I said yesterday, Wall Street will turn to their cohorts in the financial media and spin this as a beat, lifting the market, just as we saw indications of accumulation yesterday. That's the game and it worked out almost exactly as my theory went.