The following is the opening, introductory segment from this week’s edition of Notes From the Rabbit Hole. After setting these general ground rules for swing trading this market, NFTRH 378 clearly illustrated the US market from several different technical, leadership, market indicator and sentiment angles. We also thoroughly updated global markets, currencies and explicitly broke down the gold sector to be clear on what will be in place technically, sector-fundamentally and macro-fundamentally when a real bottom is achieved for this counter-cyclical sector.
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Legitimate Longs
In sharp contrast to my Goofy Gambles post from yesterday, the charts below are honest-to-goodness valid long patterns. They just happen to be value-priced right now due to the market getting battered so badly. Some of these may trek to lifetime highs. Others, like AF, will more likely poop out when they hit a wall of overhead supply. There are only a handful of these because, frankly, this isn’t really a market that’s prone to forming legitimately decent long setups anymore.
ES Market is OVERSOLD
The ES market (S&P500 Futures) according to our quantitative models has reached a VERY OVERSOLD price area from where a WEEKLY rebound should happen soon. Lower prices are possible if the bottom falls off and there is a sudden crash, but barring that scenario we should be seeing a WEEKLY bounce this week or the next.
The ES chart below shows the ES market’s current situation:
