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.

General Musings Reported As Ordered

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I bid you greetings from Opa restaurant in Los Altos, where it's happy hour and I sit alone, drinking my wine and looking at my charts. Surely there is no blogger on the planet more devoted to his beloved readers (I would also tip my hat, if I were wearing one – – which would be rather rude indoors, but I digress – – to SocialTraders, who continue to push the web site to unprecedented success).

Where was I? Oh, yes, charts.

Even though The Powers That Be pushed the market higher at the close, I was pretty pleased with how the day went. My portfolio was profitable for most of the day – – although a lovely five-figure profit dwindled to a two-figure profit (!) by day's end – – but the point is that my portfolio hugely outperformed the market (on an inverse basis since, as you've probably guessed, I was so short I could jump off a nickel). I remain positioned for a fall.

1022-finalChannel

Recall my Path of the NAZ post from a few days ago. Here was the chart; take note of the highlighted prediction:

1022-finalQQQ

Using the NQ, I've highlighted the same "prediction zone" below. The key, of course, is that this thing fall into the bowels of hell soon. If it does, I shall declare myself The King of All Charts.

1022-finalNQ

Critical to this, of course, is that AAPL cooperate. They report their earnings after the close on Thursday (errr, assuming RR Donnelly doesn't screw up and release them hours too early). Apple pretty much has to blow the doors off every car on the planet in order to justify its price. The notion of them zooming to $1,000/share is laughable.

1022-finalAAPL

The Russell 2000 is at a crucial crossroads. It formerly had broken above resistance away from a somewhat-tilted basing pattern (tinted in yellow). It then failed beneath this "neckline" (roughly speaking) and has been treating it as resistance over the past week or so (tinted in green). The crucial "break" is of the trendline at which it is currently resting. If we can break this trendline, God willing, then it's party-time.

1022-finalRUT

It's pretty simple, really: if we can get a break of the supporting trendlines – – which would take very little additional weakness at this point – – we can gather together and profit from a medium-sized drop in the intermediate-term. Some kind of failure on AAPL's part will make this easy.

The Fed comes on stage this Wednesday (which, by virtue of the mopping-up crew that will be required, will promote new employment), and with QEinfinity in place, the only thing they can do at this point is to vomit up an even greater figure than the $85 billion they are conjuring up out of thin air every stinking monthly of the year. (More radical plans, such as printing up billions of dollars of new money to buy stocks like Facebook and Amazon in the open market could come later, but we're not there yet).

I imagine Bernanke & Company will simply puke up the same language they spouted last time, since their plans need time to prove themselves (which will lead to inevitable failure, but again, I digress). I am as sure that the equity markets are ultimately going to undergo a vicious collapse as I am the the sun will rise tomorrow morning, and Bernanke will ultimately be villified as a short-sighted idiot. But the future isn't here yet, and for now, he's Our Hero, and we have to live with him and his ostensibly-egalitarian policies, surely conjured up to benefit the good working people of America.

Thus Spoke Zarathustra.

Two Falls of Grace: One Into – One Out Of

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I can’t think of a time in recent history where falling could be used
as both an inspiring metaphor while at the same time describe a
spiraling ride to shame, and dishonor. Both have been stunning.

Of course I’m talking about Felix Baumgartner, and Lance Armstrong.
Both of these men achieving stunningly detailed, and witnessed falls.
Yet, one is the absolute polar opposite from the other. Once again I
can’t think of such ever happening like this before.

Heroes and the need for them is part of the human experience.
Sometimes in our own trying hours we’ll look for guidance or inspiration
where one can say; “Yeah, you did and so will I.” Sometimes we find it
spiritually. Sometimes from a fictional character in movies or books.
However most times it’s an actual person in pursuit of some quest.
Whether they ever achieve it or not isn’t always the end all be all.
Sometimes it’s the effort that matters more.

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Flagging (by Springheel Jack)

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Equities broke support into a very sharp decline on Friday. Overnight there has been a limited bounce into 1430, but the overall look is of a bear flag. There is an important support / resistance level at 1432 and a bounce over that would start to look more impressive. It's worth noting here that ES has been making lower highs and lows since the early September high, and if that is to continue here then the move should finish below the last low at 1416.5 ES:

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