Chapter X: Technical Analysis discovers the range of moods of investors toward JPM. |
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| A well known sentiment indicator is the NVI or Negative Volume Index for JP Morgan Chase. This modern version makes use of several enhancements added by Norman Fosback. The indicator is the proportion of the daily NVI as compared to the average daily NVI over the past year. The plot is orange below the unity line (neutral implication) and green above (bullish). |
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Interpreting the Calibrated NVI for JP Morgan Chase: The NVI is an elegant indicator based on sound principles but it should not be interpreted in a simplistic manner. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
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| The NVI resembles a fundamental indicator more than a technical indicator in at least one respect, as it seems to be indicative over a span of months or quarters, rather then the extremely short predictive span typical of many technical signals. This chart for JP Morgan Chase covers the few years before the start of the chart at the top of the page. |
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| Weekly average closing altitude was 61.41 percent for the week ending 11/5/2010. Past values of the Closing Altitude indicator are marked by the blue line. The midline represents the 50 percent closing altitude. If the closing prices happened to be exactly halfway between the high and low, they would be plotted on this midline. Values above the midline indicate that day traders have positive feelings toward JPM while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The latest data indicates a downward trend, with a slope of -1.31. JP Morgan Chase stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.67. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. JP Morgan Chase share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.Short term, the slope of this indicator is negative at -0.13. |
Influence of Investor Sentiment on JPM stock prices. Also, roadmap and Summary of most effective indicators: |
| In the news, Friday, February 18, 2011: An unfavorable condition has developed with Aetna Inc., ticker symbol AET. Also, there are breaking events concerning Dollar Tree, Inc. (DLTR) and First Niagara Financial Group Inc. (FNFG) |