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JPMorgan to Bounce after Dimon Talks to Congress?

Fallout from the JPMorgan's $2 billion trading loss just keeps coming and coming.

Now, CEO Jamie Dimon has been asked to testify before Congress and explain circumstances surrounding the loss as Washington haggles over financial reform.

If lawmakers have JPMorgan in their sights, has the stock just become too hot to handle? Or is it a sign of the bottom.

“The Senate has a way of making people look stupid,” says trader Steve Grasso. “I want to see how Dimon comes off – if he comes off well – that could be the bottom.”

Trader Mike Murphy agrees and compares the decline in JPMorgan to the decline in BP after the Gulf oil spill. “At some point there’s value,” he says. “Could it go lower – yes. But I expect when Dimon gets in front of the Senate he does a good job and that buoys confidence.”

Trader Joe Terranova would not touch the stock with a 10-foot pole. “I’d just stay away. There are much better places to put money to work in this space. Take a look at regional bank Texas Capital Bancshares instead." he says.

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Posted by CNBC's Lee Brodie




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Trader disclosure: On May 17, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long TGT; Mike Murphy is long ANF; Mike Murphy is long SBUX; Mike Murphy is long FCX; Mike Murphy is long PEP; Mike Murphy is short GPS; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long AAPL; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Jim Iuorio is long C; Jim Iuorio is long GLD; Jim Iuorio is short GS

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