[Locked in]

US Bancorp (USB) came to my attention when I was talking to Locked In about JPM the other day and looked at the relative performance of the various financial stocks. It came out as one of the worst on the relative performance table and I put it as being in Stage 3B/4A depending on what trendline you choose to use. I like to use weekly closing prices personally and so it closed right on that last Friday and is very slightly below it today.

There is some near term support from the previous lows around the 31 zone, but the relative performance versus the S&P 500 is very weak and cumulative volume broke below it's signal line last week to go onto a sell signal, and the 30 week MA is turning down. So it looks like it could breakdown in Stage 4A and the sector started to come off last week for the first time after leading the relative performance table for many months, and so I thought one for the watchlist. Attached is my charts.

Looks like you are right with it being weaker at the moment. My question is how much stock do you put into the head and shoulders pattern? (comparing it to RS that is) Just curious as to what your opinion is on the matter. He says in the book that it is especially strong. But makes no real indication on what he would choose between a stock with a stronger pattern or one with a stronger RS indication.

As for the financial sector, I first got interested while looking at your breadth thread and saw it looking like a weaker and weaker chart. I did what you suggested and analyzed many of the stocks within and put a couple of different relative strengths on there..it was good to break it down like that. thx. The sector on the whole looks really good to me because the RS has just recently crossed the zero line which Weinstein points out is especially strong.

The only reason I worry about stocks like JPM is their involvement with the FED so I never know what to do.

I will keep on it but thanks for the direction.