Slope of Hope Blog Posts
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The enclosed comparison chart supports my sense that the banks in general, and Bank of America (BAC) in particular, are sensitive to the recent shift in the shape of the yield curve. In a loose sort of way, the patterns between the ProShares UltraShort 20+ Year Treasury (TBT) and BAC exhibit some pattern similarity. Certainly, the April-August downtrends paralleled closely, which represented a relentless decline in longer-term interest rates (TBT) concurrent with the declining price of BAC.
Since mid-August, the TBT has carved out a 3-month bottom pattern that appears to be breaking out to the upside, reflecting a climb in longer-term interest rates. For the past three weeks, BAC has rallied sharply, perhaps in reaction to better business propects for BAC implied by a steepening yield curve. To really get some upside traction, BAC needs to hurdle and sustain above 13.00/05.
Originally published on MPTrader.com.
As I posted before, the Solar energy industry is producing a glut of solar panels. Here is a quote by John Hardy. "Global annual manufacturing capacity for solar panels may reach 23,500 megawatts next year, exceeding demand by almost 40 percent, according to John Hardy, a solar analyst at Gleacher & Co. in Connecticut. Wind turbine makers will increase capacity to 64,200 megawatts, 30 percent more than expected orders, Bloomberg New Energy Finance forecasts."
Note also, the glut in Windpower production. Remember what goes into Wind Turbines, yes, that is right, Rare Earth materials. I'd be selling on any momo push higher.
Check out these charts on Yingli Solar
If you want to buy solar, make it for your home or business instead. Deals will abound.
With today's announcement of over $100 billion POMO purchases in the coming weeks, I gave some thought as to how to try to get on the Right Side Of Ben, since I'm kind of sick of griping about POMO and would rather benefit from it.
Therefore, I've got large long positions in DBA, GDX, TLT, USO, and XOP. As of this writing, USO (crude oil) is the most profitable (thanks for the idea, capitalisa!)
I'd be interested to hear what other suggestions readers might have with respect to putting POMO to work for us instead of against us?