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.

It’s Fake, Fake, Fake, Fake!

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Right now the whole country is fixated on the debt ceiling drama. Why not include Paris Hilton for some reliefs and oomph while we are at it. It seems Mr. Boehner is now the most powerful man on earth, holding the fate of the world in his hand. As far as soap operas go, it cannot get any better. We forget why we are here in the 1st place. I am not going to start a debate  who is right or who is wrong, because both these parties are the two sides of a counterfeit coin. Whichever side you choose, it is still fake, fake, fake and fake.



As I said earlier, I think the market will huff and puff for a day or two before it shoots up. I shall be waiting to “buy the f*****g dip”.  Do not get confused by my call when I say that stock markets are not going to fall yet. I am bullish in the very short term but super bearish in the intermediate and long term.  Why I think the stock markets will go up in near term? Apart from many proprietary indicators and formulae, I also try to think like the Boyzs.
Let us look at the following chart. It is a correlation between SPX and Fed’s Balance Sheet.

Fed & SPX

As you can see, the rise in stock price is the direct result of liquidity injected by the Fed. So now that Fed is no longer pumping money into the system, why it is still going up?  Elementary my dear Watson! Because the Boyzs want “get everyone go long, then we dump them”.
Look at the Seinfeld clip again. They are good! I mean the people running the fake rally. This rally will run till all the money sitting in the sideline has been sucked in and all late comer bulls are fully invested. Do we run away from this rally? If you are a long term investor, then yes, you should probably stay away from this rally. But if you are a trader, you might as well enjoy this ride and make money. That is the best revenge you can take.
I shall be calling out the market turns as I see them. Read my market calls and rate my work .Keep reading “World of Finance”  for the up to date information and stay one step ahead of the game. ( ).

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And Here We Go Again

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I normally don't take time on Sunday afternoon to do a post, but what we're seeing now is somewhat extraordinary, so I thought I would whip this up.

It seems this entire year, we've been going through a cycle of:

+ Crisis

+ Market Panic

+ Some form of the game Kick-The-Can

+ Market Lurching to New Highs

Whether you are talking about the "Arab Spring" (ha!), the Japanese Earthquake, the Japanese Tidal Wave, the Japanese Nuclear Disaster, the Greek Bailout, or – right now – the threat of a US Default (can you even believe you are reading those words?) we are playing out the same tired old schtick which has, from this bear's point of view, been profoundly disappointing and exhausting.

So here we are at stage 2 again – market panic – acting as an answer to stage 1 – the debt crisis. I guarantee that within hours or days, a bevy of politicians will crumble like slivers of bonito flakes on top of a fresh serving of agedashi tofu and the market will vomit to new highs based on the stupidity and short-sightedness of your fellow citizens.

So, bears, enjoy this brief respite while it lasts. The NQ is down over 1%, and its "breakout" Friday has been badly damaged. Incredibly, the Euro is actually down somewhat as I am typing this, in spite of a belief the dollar would completely collapse. And – surprise, surprise! – precious metals are absolutely rocketing to the moon as the safe haven.

Anyway, since I'm largely short, I imagine tomorrow (Monday) will be a good day. But I have pretty much zero expectations that the good times will last. The political scumbags will kick the can down the road, and when the bear market finally does come, it will probably just take the Dow down 3000 points in a single session, and all the natural, God-given string of smaller drops will all be delivered in one fell swoop.

Have a nice evening.

Screen shot 2011-07-24 at 4.17.48 PM