 Welcome traders to another Tick-Mill earnings report preview with me Patrick Nunnaby. Before we jump into today's report, obviously, as always, I want to adhere to the risk disclaimer. The most important with respect to this presentation, the views expressed by me are solely mine and they are not indicative or representative of those held by Tick-Mill UK or Tick-Mill Europe Limited. Okay, let's jump into today's report. We are looking at JP Morgan who are set to announce their earnings before the open on the 14th of July. We're looking for an EPS earnings per share of $2.89 on a revenue of $31.806 billion. The market expects JP Morgan to deliver a year-over-year decline in earnings on higher revenues when it reports its results. Revenues are expected to come in in line with consensus. The consensus EPS estimate for the quarter has been revised 0.14% higher over the last 30 days. I should say there is an earnings whisper out on the street that we could see the EPS come in as high as $3.06. This is essentially a reflection of how the analysts covering collectively reassess their initial estimates over this period. Q2 2022 results are poised to benefit from rising rates, continued loan growth and modest credit losses. But investors are more focused on potentially looming recession talk. We expect this outlook commentary to really steal the show in this earnings call. Prospects for continued loan growth and the potential for investment banking activity levels are continuing to rebound among the primary areas of concern. At the end of June, the Fed released its annual annual stress test results. These are important as they have an impact on the bank's ability to return cash to their investors via dividends and share repurchases. JP Morgan did not perform very well during this year's stress test. It made the cut, but its common equity tier one ratio was not a lot higher compared to the regulatory minimum. This was at least partially the case due to the Fed modelling a pretty harsh recession with unemployment jumping to 10% and commercial real estate prices dropping by 40%. As a result, JP Morgan's stress capital buffer or SPAC rose to 4% from a previous level of 3.2%. One of the highest amongst the US banks. The increased capital reserve level means that JP Morgan's ability to return cash to its owners will be somewhat limited this year. The company has as a result decided to keep its dividend at the current level of $1 per share per quarter instead of going for a dividend increase, which the bank had generally done following the Fed stress test results in previous years. Still, even with the dividend being maintained at current levels, instead of being raised, the dividend yield is pretty solid at 3.5%. That is not only higher compared to one that get from treasuries. It is also more than twice that of the S&P 500 dividend yields. Let's take a look at some statistical patterns, stock trading patterns around the earnings release. Shares have moved lower in the immediate aftermath of earnings 8 out of 12 previous reports. On average, the stock moved down 1.3% in the first day of trading after the company reported. Based on the previous 12 earnings releases, JP Morgan is more likely to trade lower one day after earnings for an average loss of 0.9%. On average, the stock has moved lower by 0.7% one week after earnings. Options traders are pricing in a 3.5% move on the earnings release. However, the stock has actually only averaged a 2.3% move in recent quarters. From a sentiment and flow perspective, it's noteworthy that there has been notable buying of 5,221 contracts of the $115 call expiring this Friday. Options order flow in general is bullish. Investor sentiment going into the company's earnings release has only 39% expecting an earnings beat. 62% of Wall Street analysts retain a bullish outlook for the stock in general. Let's take a look at the technical perspective and see where we might identify some near-term trading opportunities. Obviously, stock has been in a pretty significant downtrend. Ultimately, I'm looking for price to test into this weekly high volume mode at just below the $100 level. We also have a 78.6% retracement of the entire post-pandemic advance coming in at $97.89. Now, bearing in mind that the interest in that call structure for the Friday expiry, I could see the potential of a pop here to the upside. But I would be using any near-term strength, especially into this $120, $121 area. I'd be watching for bearish reversal patterns there to reengage on the short side. And ultimately, I'm looking for that test down just sub $100, which is an area where I'll be watching for longer-term opportunities to build a longer-term bullish position in JP Morgan. As always, traders, plan the trade. Trade the plan and, most importantly, manage your risk. Until next time, thanks very much.