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.
As I mentioned in the morning, it was the third push up from the triangle and the pushes are now complete. Before today, the last seven trading days was a churn. The market was going round in circle and was making it difficult to find any direction. With today’s price action the direction of the market is becoming much clear. I will have to wait for tomorrow to decide whether I will close my short position on January 12 or 20. But either way I expect the market to go down from here. But may be one last attempt to retest today’s high will be made tomorrow.
It was just 11 point gain in SPX for the day. And I think the market will soon give back those 11 points and some more. The interesting thing to notice is how the sentiment changes. Before the year end, when I was talking about Santa Rally, there was general skepticism around. Not many believe that SPX will come close to 1300. And yet today, there is talk of SPX crossing 1400!
The Daily charts below show near-term support and resistance levels for the Major Indices, as follows:
- Dow 30: Support = 12400 and Resistance = 12500
- Dow Transports: Support = 5150 and Resistance = 5200
- Dow Utilities: Support = 450.00 and Resistance = 455.00
- S&P 500: Support = 1280 and Resistance = 1300
- Nasdaq 100: Support = 2360 and Resistance = 2380
- Russell 2000: Support = 755 and Resistance = 770
We are in a no man's land. Even though this symbol is specific to homebuilders, I think it nicely captures the Yin/Yang of the market at current price levels.
Amazing…looks like we humans spend our time drinking coffee while playing on our iPads, bailing out banks, buying art, taking over companies, avoiding paying taxes, building defenses, and exploring space…makes me wonder who's actually being productive, where all of this is getting us, and, really, what is the purpose of life…
Click on link for large picture:
Uber-Sloper Iggy emailed me a link to an article in the Wall Street Journal which – gasp – quoted my very bullish Slope post from this morning.
Now I know exactly what my detractors are going to say: that I top-ticked the market and went long at exactly the worst moment.
Well, smart guys, I sold my SPY block at 129.3 this morning (I bought it yesterday after the close at 128.11). Not the highest price of the day, but not bad. So I took a nice profit. And I've been totally short since then.
Not to say I'm balls-out short. I'm only 43% committed right now. But just in case the world is laughing at how poor old Permabear Tim finally threw in the towel and went long at the worst possible moment….it just ain't the case.