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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
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Monday, May 14, 2012

Risk-on Risk-off Trades in JPM from 1990

Further to the comments in my post of May 11th pertaining to JPM, the Monthly comparison chart below of JPM (purple), the four Major Indices, and the Financials ETF (XLF) shows the major swings of JPM from 1990 to Monday's close.

As you can see, its swings have been very much more volatile and large in comparison with the Dow 30, S&P 500, Russell 2000, and XLF. It has, however, behaved more in line with the Nasdaq 100 Index (green). Both of these instruments have traded much more aggressively over the past 22 years, indicating a much greater appetite for risk than the others. However, when losses have happened, they have also happened to a much greater extent in these two on a percentage basis than in the others.

The price of JPM now sits down at 1998 levels, and, at the moment, the risk trade in it is OFF. I'll continue to monitor it relative to these indices and XLF in order to gauge its relative strength/weakness over the next weeks/months.