Why are we here?
That’s a big question. Let’s break it down into four sub-questions.
Question One is…..why am I – – Tim Knight – – here on Slope?
I am here for a number of selfish reasons. First, I have a need to express myself. I can’t paint, I can’t draw, I can’t really sing………so I write. I have been writing professionally since I wrote my first nationally-published article as a 15 year old boy, and I haven’t stopped in the many decades since. I’m a writer, and it gratifies me to share my thoughts with an audience.
I am also here for a monetary reward, albeit a relatively small one. My beloved Slope Plus subscribers constitute the vast majority of revenue here, which is why I try to give them the best I possibly can. But I also find psychic gratification in the knowledge that I’ve built a popular community here. After nearly a dozen years of doing this blog, it still amazes and humbles me that people elect to spend part of their lives here.
Yeah, OK, I’ve had enough of “precious” metals. I had, for a while, joined the kook train, thinking that “real” money would be smart insurance for central banker lunacy. Well, folks, the central bankers have won, and gold has been suck-tack-ular for years now. Mercifully, I dumped almost all my bullion a few weeks ago when I was still able to clear a tiny profit. I thought we might have a little bounce, but this thing isn’t getting up off the mat. And God help the miners!
This has been a very impressive move upwards, particularly on RUT/TF, and I’ve heard a lot of talk that resistance is now irrelevant and that equity indices can now head to the moon without restraint.
As it happens there is an opportunity to test that theory today, and I’m watching what happens here on RUT with great interest & I’m showing why on the third and last charts below.
60min sell signals have fixed on all of ES, TF and RUT here, and ES is in a decent rising channel. The next obvious move is to channel support, currently in the 2229 area. ES Dec 60min chart:
It was precisely one month ago that we were all waking up to Trump World, as the results confirmed that President Pantsuit was not to be. The ES and NQ had been limit down earlier in the session, and although the losses had abated somewhat, it seemed that equities were ready to be sold off en masse to the shocking political news.
Even those who have been hiding under rocks or in caves are well aware what has actually happened in the ensuing month: records highs across the board, with this week in particular laying waste to anyone insane enough not to embrace one of the most expensive markets in history. So strong has been the rally that many of my lovingly-drawn trendlines have been shattered, such as this one of the Dow 30 going back for decades……….