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 was another day of sideways trading. The market was able to hold gains for yet another day which was impressive given the short-term overbought extremes, strong overhead resistance and yesterday’s huge upside gap.
I am still leaning towards a close of the upside from yesterday which would bring SPY down to $117.25, DIA down to $112.21 and QQQ down to $54.66. I would expect that this occurs over the next 2-3 days, but Mr. Market always has a way of playing games with what should be obvious price levels.
Earlier today, Evil Speculator posted a Gobi Desert article, highlighting the volume vacuum overhead.
I took a quick peek at SPX relative to the ichimoku cloud. With the run-up from the last few days, we are now touching/crossing the underside of the cloud (1192-ish).
I've seen a lot of terrific charting here at Slope. Everyone has their favorite indicators and methods, which taken together usually tell the story with reasonable accuracy. My personal favorite (which I don't see a lot of unfortunately) is the intermarket spread, or ratio, chart. When the market makes a powerful move or takes out a key level, we're all trained to look for confirmation. Whether it's volume or your favorite momentum oscillator, we need tools to tell us whether a lower low is going to stay that way or is in fact ripe for reversal. Spread charts are an awesome ancillary indicator that I don't see chartists use enough. Part of what's cool about them is the securities observed can be customized to fit the focus of traders at a particular moment.
I don't suppose NetFlix's management is winning many friends these days (except for those long Puts or short the stock). In three months it has lost two-thirds of its value! The funny and amazing thing is that yesterday Netflix decided to undo their complete screw-up of their product offering – – buyers rushed in, gobbling up the stock and bidding it way higher (circled below), only to find that the poison is still very much in the system. All buyers from the past 14 months are underwater now.
The way I see it, NFLX may not find stability until it's in the $40s again.
I shorted JNK this morning at 36.87 and have a stop at 37.16