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.
I'm actually looking forward to earnings season kicking into full gear in about a week. In this market, where the constant threat of more "easing" acts as a permanent source of helium for equities, it's nice to actually get some fundamental data and reality back into the picture, at least to see what's genuinely going on with the companies on which stocks are based.
Zynga is providing a bit of fireworks after hours, since they lost about 20% more of their value, pushing to new lifetime lows. This will yield a drop of about 86% from its high last March, which is, let's face it, pretty stunning. One wonders if Zynga will be around in a year or two.
Data released today shows that the total number of new Factory
Orders dropped to its lowest reading since March of 2007, as shown on the graph
This manufacturing data is not supportive of a sustainable rise in the equity
markets; however, the markets seem to have their own agenda, regardless of the
fundamentals of this sector within the slowing economy. A slowing demand for the
"same old stuff" is just that…a slowing demand, regardless of how much money
becomes available for borrowing by the masses. At some point, rising markets
without supporting fundamentals, partnered with new, attractive, innovative,
useful, and beneficial products/services with "needed and must-have" value,
become a ship without a captain.
I bought some HP earlier today. I think this is the first time in my life I've ever touched this particular stock. I'm playing this for a modest bounce. Look at the long-term chart, and I think you'll agree it's badly oversold right now.
Most of you know that David Byrne is way up near the top of my list of favorite musicians. Below is one of his best songs, which I personally interpret as a fantastic take-down of materialism and adolescent vacuity. If you are really into Byrne, you might also want to watch this interview that just came out.
Last time around, this trade on Sears Holding (SHLD) didn't work too well. This time around, I'm taking a different approach to this trade. Instead of buying on the breakout which is what I did before and got burned on the head-fake it did, I'm buying on the pullback to lower channel of the uptrend.
That allows me to keep risk tight (about 4% max) while possibly benefiting from a move that could go to the upper channel at around $64.00. That gives me about a 3:1 reward to risk ratio which is ideal.
I scaled in to this one as well and my buy-in price is at $56.50 with a stop at $54.48.
SPX broke up slightly from the middle bollinger band yesterday which leans slightly bullish, and the bollinger bands are pinching on the daily chart, which as with when they were pinching around the 1400 area, is indicating that a significant trending move is coming soon. Overall I'm leaning towards that move being upwards for reasons I'll explain: