Slope of Hope Blog Posts
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Morgan Stanley (NYSE: MS) continues yesterday’s surge off of the bullish confluence EMA’s that bunched together just above 29.00, and which has helped to catapult the price structure towards a test of key resistance at 31.00/10. Purely from a technical perspective, the future of near- and perhaps intermediate-term price direction in MS will be determined by either a thrust above the Oct-Mar down trendline (31.00), or a violation of 29.00. Right now, the weight of evidence argues for a challenge of 31.00.
"The rich get richer. That's the law of the land." – Ed Moss – Glengarry Glen Ross
The Dow is lurching toward 11,000 while bears are getting burned, tarred, feathered, and maimed across the globe. Actually, I'm not sure if the quantity of bears on the globe merits the use of the plural anymore.
Ever since the gruesome first week of March, I've been in defensive/hunker-down/survive-at-all-costs mode. I've managed to use the double-bullish instrument SSO today with good results, although I finally cried "Uncle" on my IWM short, since there isn't any clearly-defined stop-loss point anymore that isn't light years away.
I will say, regarding the Russell, that it seems to be within a hair's breadth of touching its broken trendline. That line, fractured on January 22nd, is an important one. Given the almost vertical rise since February 5th (which is a date I will never forget in my lifetime……..), who is to say whether it will hold or not.
Earlier today, I bought the ultra-bearish-on-crude-oil ETF symbol SCO. A little while later, I assumed it had gotten smacked down hard, since the stock market was so strong, and I was surprised to see it was up about 1% from where I bought it, in spite of the market's overall strength.
I did a comparison of SCO to SPY and saw the interesting relationship these two have had recently. SCO has been channeling nicely between about $12.25 and $16.70 for half a year now. It appears that whenever SCO is at the bottom of its channel, the SPY is at a intermediate peak, and whenever SCO is at the top of its channel, the SPY is at an intermediate low.