Josh (The Reformed Broker) did a post at the start of this year on which I commented. He was spot-on.
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 anyone remembers when working on their own cars before they became computers knows the old sage “If it ain’t broke, don’t fix it.” So why are the media channels full with tantalizing teasers to make sure you’re tuned in to hear how once again a problem that has supposedly been solved 375.83 speeches ago is in need of another speech to tell everyone it’s once again solved?
For quite awhile now I have written (some might argue pontificate) that the Euro crisis has never been settled regardless of what has been expressed throughout the financial media outlets. I can not help myself but to break out in sheer laughter when someone argues with either myself or in a discussion with the talking heads on television that the crisis has been averted. Or as one buzzer banging commentator used to say “That issue is off the table!” I say to that...”Really?…Oh Really?”
I've been watching Sonic (SONC) and I've gotta say, there are few short setups that I like better than this one – that descending triangle that has formed is picture perfect, and I'm taking it short at $9.74. The Power-One (PWER) trade also looks inviting from a momentum stand-point, but right now, I'm more interested in waiting for the FOMC statement to pass first before jumping in long on it (if the setup still works at that point).
The SPX looks more like another day of chop – once the FOMC statement rolls around watch to see whether we can take out the day's highs or lows. If we sell-off, I'd avoid any new long positions.
Here's the Trades:
LONG: Power-One (PWER)
SHORT: Sonic (SONC)