The Better Morgan:

The phrase the more things change the more they say the same, does not apply to the stock market all the time. Case in point being JPM was once considered the best in breed in the financial arena. In my humble opinion, there is a new sheriff in town with the chart below of MS. Yes, they both have Morgan in their names, but Stanley is sticking out with its relative outperformance. Thus far on a YTD basis, MS has doubled the advance of JPM, higher by 41%, and has a better dividend yield of 2.9% compared to 2.4%. MS now trades just 1% off all-time highs, while JPM lingers in correction mode 10% off its peak made in early June. I am not a big believer in mean reversion but of course, it is entirely plausible that JPM can play some catch-up. At the moment there is no question that one should be overweight MS against JPM. The latter is at an important level on its chart. It has now been swimming below its 50 day SMA for 6 weeks and broke below a bearish head and shoulders pattern on 7/19. There has not been much follow-through to the downside and we know from false moves can come fast ones in the opposite direction. If it can gather some strength here a double bottom pattern is taking shape with a possible pivot of 159.26. 

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