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.
Over the past three years we have been beaten over the head with the concept of flight to quality; simply as the equity market falls the bond market rallies. Global unrest crushes equities, the warm fuzzy blanket of Quantitative Easing rallies equities. Now I present to you the idea of equity flight to quality. Huh? Yes, flight to equities for safety.
Here is the theory. If I’m a global fund manager, especially in Europe, I’ve seen my local stock markets get crushed so I need to find somewhere to put my money. I don’t trust European bonds, I don’t trust European stocks. Precious metals are volatile especially if based on the wrong currency. So I look across the pond and see US Treasuries and US equities. US Treasuries are offering record low yields; the 10 year just fell to 1.5% and that just doesn’t look very appealing. This leaves US stocks.
I've decided to release my new project tomorrow, June 1st. I've been at work on it for quite some time, and although I'm very proud of ProphetCharts, this new creation is, I think, my best idea (errr, it's not a chart package – – something quite different). I'm quite excited about it, and I hope you like it. I'll be putting up a post and video at midnight. Thank you.
The bulls failed to hold the 1320-2 area yesterday morning and I posted the SPX 60min chart on twitter in the afternoon pointing out that unless we were to see a more decisive break up, then what we are looking at on SPX is a bear flag with a downside target in the 1210-20 area: