[isatrader]

JP Morgan Chase (JPM) has formed a head and shoulders top on the daily chart. I am adding it to my watchlist for a potential short even though it is still well above its 150 day MA. To be honest, I have been questioning my relative strength (as it is not mansfield) and I decided today I need to do a little more research and try to add my own code to prorealtime...anyway, with my current settings, it is heading lower vs. spy.

On the volume front, I have noticed that every day in which the volume is higher than average is a negative day. (Only on daily)

I have added the weekly chart as well to show how volatile this stock has been with its crazy range over the years.

Thoughts anyone?

ProRealTime has the Mansfield RS built in I believe, so you should be able to find in the available indicators to add to your charts.

With regards to JPM I've attached a weekly relative performance chart with a 30 week MA on each to compare against the S&P 500, XLF Sector and the $DJUSBK Bank Sub-Sector that it belongs to. I've also attached the $DJUSBK Bank Sub-Sector chart.

I think a good exercise to do at this point is to make a list of the other banks and then create the same relative performance charts versus the sector and sub sector, so that you can see if JPM is the best shorting candidate of the major US banks. But also very importantly is to do peer to peer relative strength comparisons against the other banks i.e. BAC, C, WFC etc as that will give you a clearer picture as to whether it's a strong stock in it's sector or a weak stock. Another way to do this would be to get the Mansfield RS reading for each stock and create a relative performance table in a spreadsheet ordered by the highest reading as I do each week with the US sectors.

I've had a quick look at the banks sector myself and for example USB and BBT looked to be much weaker technically imo, and so it's definitely worth looking into the sector.

A final note to be aware of, is that Financials has consistently been in the top two for relative performance of the major sectors for the last six months and so is one of the strongest groups overall, but it has been weakening more recently.