I mentioned on April 28th that GDX had a nice breakout from its diamond pattern. Just look at it go!
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.
Lazy Day of Charting
Greetings from the pitch-black hotel room I'm in here in Las Vegas. I'm going to spend the morning pretty much like I spend each other weekday morning – – trading and charting.
Since I'm not with my regular trading system, I'm a little hampered in my blogging, so I'm going to take the lazy blogger's approach and just put up a series of individual charts during the course of the trading day. Each of these will be short positions I currently have which I find particularly appealing. Here's the first:
Sentiment Scout (by George Rahal)
Financial media and newspapers have been besieged by bearish overtones, speakers, images, etc. This is fair, given that a crash is scary, but I want to highlight one example that is particularly subtle and unique. To me, it exemplifies the underlying psychological layers of bearishness that have existed throughout most of the bull market. 
The image above, a snap-shot of the home page of MSN Money, highlights today's 400 point rise in the Dow. The chart, however, does not contain the typical green up arrow, but is designed in such a way as to provoke fear! Three qualities of the image create this effect: the most obvious is the color scheme, dark blue and red (for an up arrow!). The second is the curvature of the arrow as well as a thin line above it. They suggest the completion of this move is a roll over on the downside. The third is the perspective of the dark blue grid that serves as the background. Notice how the bottom of the grid is narrow and seems further away in perspective than the top. The effect created is of vertigo, as if the viewer is standing on the top of a building looking down.
Fear and vertigo are the emotions that image was designed to produce from the viewer. Doubt and confusion will be side-effects because, blatantly, an up arrow and +400 seem like good things. Unconsciously, the viewer experiences turmoil from the conflicting messages.
The care the media is taking to foster fear (which sells) in its readers is no doubt a sign of structural bearishness that will continue to serve as a foundation for market strength.
