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.
A Lot Like You and an Awful Lot Like Me
Someone wrote me today expressing concerning that the EUR/USD was getting near the bottom of its channel, which would mean the little bit of bear-love that the market has been providing is ready to, once again, end.
Well, I can understand the concern, which is why I have a large long position in FXE as a hedge. Here's the EUR/USD channel:
I'd like to point out, though, that the correlation between the EUR and the SPX isn't perfect. Sometimes they are in sync, and sometimes they lag. Take this summer, for instance. The Euro bottomed in early June (circled below in green). The equity markets didn't bottom until a month later (circled below in red). There was a big spread between what the Euro was doing and what the S&P was doing, tinted below in blue, and we're seeing that again.
What we could see, as we did this summer, is the Euro "drag" the equity markets down for weeks to come. It's anyone's guess. Until then, I remain hedged – – currently about 25% long/75% short. This will continue to "water down" any gains from days like today, but it'll also mean that an equity rally won't kill me.
That's it from me today. I'll see you Wednesday morning.
Harry Boxer’s Charts of the Day
Originally published on TheTechTrader.com.
A Sloper’s Winning Ways
The first thing I do when I wake up (wayyyy too early, like at 4:30 a.m.) is grab the iPad by my bed and look at emails and the markets.
I was pleased this morning to get an email from City of London-based Sloper Stephen Wales of RipleyWales Financial Planning. JP Morgan held a "Fantasy Fund Manager" contest, and Stephen came in first! There was a lengthy interview about him, and in it he was kind enough to mention some of his favorite sites to read:
Thanks, Stephen, and congratulations! (Incidentally, he wanted me to send a shout out to fellow countryman Springheel Jack for his fine work here too).
SDS-SPY Chart Analysis (by Mike Paulenoff)
The e-mini S&P 500 is approaching key support at 1171.00, and the S&P 500 Depository Receipts (SPY) is approaching key support at 118.00-117.60. So why aren't I positioning myself long the UltraShort SPY (SDS)?
The developing pattern in the SDS is starting to take the shape of a 4-week base-like formation that could propel prices considerably higher — if the SDS can hurdle and sustain above key resistance between 27.66 and 27.91. Such a move will trigger upside targets of 28.50, and then 29.50.
That said, the underlying SPY must break and sustain beneath key support at 118.00-117.60 to trigger a significant sell signal that corresponds to an upside breakout in the SDS. Otherwise, all of the action off of the 11/05-11/09 lows at 25.39/35 represents a countertrend move within the dominant (down) trend, which when complete will resolve in a downside continuation into new low territory.
Originally published on MPTrader.com.
