Slope of Hope Blog Posts
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Well, today was a bore and a drag. It started off fantastic, with a very nice overnight profit on my /ES short and a big, fat profit at the opening bell. The profit eroded into a loss, turned into a big loss, and then almost turned into a gain again, and ended as a medium-sized loss. Boring. Drag. Yuck.
So I'm not going to do any more commentary today, as I've nothing new to say. Instead, I am showing a favorite cartoon from my childhood – – Royal's blog inspired me to do this – which sums up nicely how I'm feeling about the market. When examined in private, it sings, dances, and behaves as expected. In the public eye, it just sits there and croaks. The perfect analogy.
The intermediate-term S&P 500 remains bullish. It has come out of an impressive bottoming pattern, it is well above its ascending trendline, and any dips it has had over the past five months has been inconsequential.
However, the index its mashed up against the underside of several important technical levels, plus the short-term chart doesn't exactly scream "ready to explode to the upside"………..
Turning our attention away from the short side of the market for a moment, here are some stocks I bought earlier today:
Tip o' the hat to Wershovenist Pig for noticing yet another "contrary cover" phenomenon, shown below. This only strengthens my convention that we're going to have a blast.
I'm starting to like this market as much as I detested it just weeks ago. Things are starting to feel tradeable again.
Last night was a good example. I spent the day loading myself to the teeth with new short positions. Afterward, instead of hedging myself, I thought there was an opportunity to make even more with an overnight /ES position, since there seemed to be a very clean line of resistance at about 990, so I shorted 21 /ES at 988. How pleased I was to amble downstairs this morning and see the area tinted in blue:
I lightened up by 8 contracts but otherwise am holding fast. We are, I would mention, entering kind of an interesting zone at this point. Take note of the prior tinted area, as well as the current one.
Good luck today! The opening bell just rang, and I'm up over 1.2% on the bottom line right from the get-go, so this could be another good one.