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.

My Kind of Trade

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This seems like one of those days where all the action is compressed into about five minutes, and the rest of the day is a slog.

As we were "drilling down" into the zone I mentioned in the previous post, it became apparent to me we had hit some bedrock, so I closed out the Russell 2000 puts I bought yesterday. Here was the result:

0930-ruttrade

Very nice! A 20% profit in one day, and without an undue amount of risk. These are the kind of straight directional trades I love. I'm still wild-eyed bearish on the Russell, but I'm going to wait for another good entry point.

For the moment, I took a big long position in GLD – – it's my only truly large position at this point. Let's see if we fight our way back up to about 1052 on the /ES or not.

The Dollar/Equity Decoupling

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I am feeling hopelessly behind on comments – 36 hours – so I might just decide to cut myself loose and accept the fact I'm not going to get a chance to read them. Busy, busy, busy……………………

One very interesting thing I've noticed is how the EUR/USD is starting to decouple from the equity markets. Look at the graph below: notice how the EUR/USD (shown in blue) used to be joined at the hip to the /ES (shown in black). Over about the past week, though, these two don't seem to be even on speaking terms.

0930-decouple

My tin-foil hat theory is that the /ES is a much easier market to manipulate than the tremendously large foreign currency market, so the "truth" is tied more closely to EUR/USD than our friend /ES. One will have to catch up with the other, I think, eventually.