In the spring of 2012, JPM and Dimon lost some of their sheen when their London Whale made the bank swallow a $6.2B trading loss. The ensuing sell-off was mostly driven by emotion and proved to be a great opportunity. Since its June 2012 low, JP Morgan Chase (JPM) has nearly doubled.
However, the uptrend line over the past 15 months has been broken (see chart below). When strong trend lines are broken, one has to bring the issue to the front burner. Is this just a pause or the beginning of something worse? While the market answers that question, there are probably better places to make money than at this bank.
To be fair and to not only pick on JPM, please see the charts of Goldman Sachs (GS) and the broker dealer ETF (IAI). They are getting very close to breaking their trend lines too, but JPM appears to be leading the way.