Frank Cappelleri founded something called CappThesis. The name combines his last name with the word thesis. He looked at JPMorgan Chase after the bank reported earnings and decided bullish charts and fundamentals are lining up. Lining up like what, exactly? Ducks in a row? Dominos? The metaphor does no work here but sounds vaguely authoritative so we're keeping it.
JPMorgan reported Q2 earnings earlier in the week. The stock went up. Cappelleri drew some lines on a chart afterward and determined the lines agree with the numbers. This is technical analysis. You draw lines until the lines tell you what you already wanted to hear. Then you call it a thesis and name a company after yourself.
Retail traders will see this and think they've discovered alpha. They'll buy JPM calls on margin because a guy with two Ps in his last name said the chart looks pretty. The chart looked pretty because the largest bank in America made money during a quarter. Stunning work. Someone get this man a protractor.
The fundamentals are strong, apparently. JPMorgan has deposits and loans and does bank things profitably. The technical picture confirms this by also being good. When the vibes match the numbers, you get a CappThesis. When they don't match, you get a different CappThesis about waiting for confirmation. The system is airtight.
Cappelleri is bullish on a bank that has been bullish for fifteen years. He arrived at this conclusion by examining squiggly lines that moved up and to the right after the company said it made more money than expected. The founder of CappThesis has cracked the code: when good news makes stock go up, that's called alignment.
Your cousin Derek is buying JPM shares in his Robinhood account right now because the headline had the word bullish in it twice.
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