One thing I aways look around for in the event that trendlines aren't lining up that well on SPX is another major index that may have assumed the lead for the time being. That index for the moment is the Transports index, and I say that because the last low there was a perfect hit of the rising support trendline from the October low. On the transports index I'm seeing what looks like a 70% bullish ascending triangle, which just needs (ideally) another reversal from the upper resistance trendline to confirm it. That resistance level is now 2% above and 'll be seeing that as strong resistance this week:
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.
Start Spreading the News……..
Greetings from New York City!
Yes, The Book of Mormon has had such a powerful pull on me that, as promised, I have uprooted myself (which, for me, a notorious homebody, is extraordinary) to spend the week here. I see the show tonight and expect to man up all over myself.
Because I intend to give my family the Tim-time that you good people usually get, Slope is going to be a little slower than usual, but I expect that the energetic pace of the comments section will keep things relatively lively. Thing will be fully back to normal by Tuesday, January 3rd, when the new trading year starts for us all.
Hasa diga eebowai!
Trading Fundamentals (by BBFinance)
First of all; wish all of you Merry Christmas and Happy, Prosperous New year.
Isn’t it wonderful to put your trading on auto pilot? When you have taken a position and you know that it is going to be achieved. No more anxiety attack and looking for intraday signals. At least I find it much better this way.
Slopefest IV & SPY Guessing Contest (by Market Sniper)
Happy Holidays to my fellow Slopers! May the New Year bring you more trading success! Time to start planning the upcoming annual Slopefest! Meet old friends and make new ones. Put a face and name to that avatar. As our gracious host, Mr. Tim knight, appears to be travelling to the Big Apple shortly and festivities surrounding that event could include an official Slopefest, the one planned for 2012 in Las Vegas, Nevada may either be IV or V.
Slopefest date: May 19 and 20 in the year 2012 Anno Domani
Slopefest location: Las Vegas, Nevada, US of A
Three Dows…DBC vs AUD/USD…DBA vs POT vs SPX
Below are 3 Daily chartgrids of the following (first I'll show a series of charts, then provide some general comments and a summation at the end of this post):
- 3 Dows
- DBC (Commodities ETF) and AUD/USD
- DBA (Agricultural Commodities ETF), POT and SPX
Below are a series of percentage comparison charts of these instruments on varying timeframes:
General Observations:
- All instruments are at or near their overbought level on the Stochastics indicator
- Momentum is in positive territory above Zero on all instruments
- The only one to have made a new high since August this year is the Dow Utilities, and it is in a definite uptrend on the Daily timeframe
- Of the 3 Dows, Utilities has been leading in strength this year, followed by the Dow 30, then Transports
- They have all rallied this past week
- The Dow 30, Dow Transports, and SPX are attempting to re-form an uptrend on the Daily timeframe
- DBC, AUD/USD, DBA, and POT are all still in definite downtrend
- During the past 30 days, DBC fell below the AUD/USD, but regained in terms of strength the past 4 days
- During the past 5 Years, POT has shown relative strength as compared to DBA and SPX…SPX began to diverge and fall in 2008, while POT shot up to new highs…POT was the first to show signs of recovery before SPX near the end of 2008…during the Year-to-date, we're seeing a divergence this past quarter with SPX advancing while POT and DBA continue to drop, apart from an upswing this past week
- Over the past 10 Days, POT and DBA stabilized…DBA moved above SPX…and POT jumped ahead of both DBA and SPX during the past 2 days
Summary:
Generally, these markets are beginning to look a bit overbought. However, with momentum in positive territory, they may only pull back sufficiently to relieve this situation in the short term…a "tell" as to whether they may then continue to rally would be to see if momentum stays above zero. I'd look for continued strength in DBC and AUD/USD…any developing weakness of significance could have an negative effect on the equity markets. I'd also look for continued strength in DBA and POT…a drastic drop in POT could, ultimately, have a major impact on the equity markets.
http://strawberryblondesmarketsummary.blogspot.com/
