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.
Well, as I sit here on Thursday evening, the ES is completely unchanged. It seems astonishing, but index after index, and ETF after ETF, is at lifetime highs. There are a handful of indexes, such as the Dow 30, which aren't quite there yet, but the Dow's equivalent ETF, symbol DIA, is at a lifetime high (based on dividend adjustments, which is really the only sensible way to do it, but I digress).
On the rare occasions I've offered up long ideas recently they have tended to be in the area of financial stocks. I'm not talking about the JP Morgans or the Goldman Sachs, but lesser-known names. The fact that these all tended to be in the same sector wasn't deliberate on my part; it just so happened that the chart patterns were really good on the long side, and naturally, since they were so closely correlated, they tended to garner my attention as good long plays.
Anyway, since there's precious little I can offer as convincing proof that the market's about to fall to pieces ("Wave 3! We're at the cusp! The cusp, I tell you!"), let's review some of the more successful long ideas of late:
I seriously don't care enough to dig into the shenanigans of Intel's final minutes of trading today, but I can tell you that, now that earnings are out, INTC is trading where the red arrow is. Yes, the one way down at the bottom of the y-axis.
Washed-up former tech giant HP has rallied about 50% in recent weeks due to dead cat bounce buying. As we approach the gap at $17.86, I believe this will be just another in a series of dead cat bounces that has seen the stock fall from the 50s to the sub-teens in the span of just two years.
Sooooooo……..I thought all those trllions of dollars that Bernanke sent us into debt for were to keep interest rates low? Looks like the trend is reversing pretty hard. Well, don't worry. I'm sure higher interest rates won't be a problem, given the $16 trillion in debt that we owe. Oh, wait a second…..
The gentle rising channel I was looking at yesterday on the ES 60min chart is still holding this morning, with channel support and resistance in the 1460.5 and 1481.5 areas respectively. ES is making marginal new highs and lows and I won't be looking for significant downside unless ES either gets near to channel resistance or breaks channel support: