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.
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:
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.
I am going to be out of pocket for a couple of hours as the market has suddenly become profoundly interesting again. Those Russell 2000 puts I bought yesterday are setting the world on fire. Yow-hoodle!
We need to "drill through" the tinted area; that zone is the bear's enemy right now. Break it, and let the games begin.
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.
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.