JPI will be added as an Active Long-term Trade Idea with stops and targets TBD. As this closed-end fund may or may not need one more thrust lower with the falling wedge pattern, I prefer to use a scale-in strategy to accumulate a position. The most likely first target will be the 23.20 area although I plan to follow-up with specific target(s) & suggested stop levels soon.
JPI invests primarily into preferred and other income producing securities and like most other recently posted CEF trade ideas, the fund employs the use of leverage which can serve to enhance returns, if conditions are favorable, but it can also exacerbate losses above and beyond those of its holding at times. The current distribution rate is 9.09% and JPI is selling at a discount of -9.20% to its NAV (as of yesterday’s close.)* As always, DYODD (do your own due diligence) and consider adjusting position sizing accordingly to account for the potential effects of leverage. More info on JPI can be found by clicking here.
*source: Nuveen Investments (www.nuveen.com)