Slope of Hope Blog Posts

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Mike Paulenoff’s Mid-Day Minute: Gold

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Gold — the SPDR Gold Shares (NYSE: GLD) and the Market Vectors Gold Miners ETF (NYSE: GDX) — have turned positive this morning, in the aftermath of intense selling pressure earlier in the session. This is a sign of meaningful relative strength in the sector, but the day is young yet. Looking at the GDX chart, today's spike low at 41.35 followed by a powerful upmove to 42.50 — where it continues to sustain since the opening few minutes — has the look and the feel of the completion of the correction from the 2/18 high at 45.56. With that in mind, I am looking for confirmation of today's low upon an upside penetration of 43.05.

Originally published on MPTrader.com

So, Is Mr. Bernanke… ?

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Hi all.  The following is a copy of an email update sent out to NFTRH subscribers this morning, pre-market.  Ultimately, it represents one guy's view Keynesian's and their manipulation of all things paper with inflationary policies along a continuum to the moral hazard we now find ourselves stuck within.  Bernanke is seemingly disregarding the treasury market and its demands… or does he know err, more than we do about the ill-health and lack of sustainability of 'the recovery'?

So, is Mr. Bernanke…

a)      Stupid?
b)      Desperate?
c)       Out of touch?
d)      In total control?

a)      No
b)      Yes
c)       Possibly to a degree, given the dimming effect academia tends to have on Keynesian types
d)      Yeh, right

Still, all the man had to do was utter some gentle words on interest
rates and the markets complied for a day at least, with the dollar
down, gold down, stock market up and commodities up.  You do know that
these inflationists WANT commodities up don’t you?  That is why I call
these people desperate; they know full well that any hoped-for recovery
is going to be attended by rising prices and costs given its origins in
overdriven money printing.  This obviously gives the lie to the Fed’s
“Price Stability” mandate.

The attached chart shows the parameters on the short term stock market
recovery that we had expected.  The SPX along with gold, gold miners,
commodities and China all remain at or near resistance levels from
which they can turn back down, as expected.  I say “can” because my
black box, the one with the remote market controls, is shorted out and
in the shop for repairs.

Spxdailyupdate

Getting back to point a), he is not stupid and the reason I believe he
is desperate is that on the surface it seems outrageous that he
pretends to be able to control interest rates at near Fed Funds zero. 
What does he know about the sustainability (lack thereof) of ‘the
recovery’?  What does he know about the Treasury’s ability to fund
itself despite the long bond near crucial biggest picture support?  Why
dare he not upset the markets at a time when ‘the recovery’ is
obviously in play and commodity (and gold) prices have been rising?

It is obvious that Ben sees a strong dollar and intends to play off of
that.  But what is the dollar recovery other than a reflection of
scared money knee jerking out of the suddenly unsound euro.  NFTRH you
will recall, never considered this alternate confidence note as being
sound.  It appears Bernanke is playing around in the slop between the
global public’s continued confidence in these and other paper debt
notes and the day when said confidence hits critical mass to the
downside.  That will be the day that gold, still looking constructive
in most major currencies, is gone for real in a bull market across the
board.

Dialing it back in to short term events, review the attached chart. 
There’s the resistance.  Let’s see if hope has some power left or if it
will continue to wane.

Regards,

Gary
http://www.biiwii.com
http://www.biiwii.blogspot.com