Slope of Hope Blog Posts

This is the heart and soul of the web site. Here we have literally tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. You can also click on any category icon to see posts tagged with that particular category.

RUT:RVX Ratio (by Strawberry Blonde)

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Price has fallen and is trading around major support at 50.00 and the Momentum indicator is still above zero on the following Weekly ratio chart of RUT:RVX. A break and hold below 50.00 and the zero level could signal that a big decline is in store for the RUT.

 

 

A look at a 60 min (market hours only) chart of the Russell 2000 e-mini Futures Index (TF) shows that price is currently trading in the vicinity of its lower channel, Monthly Volume Profile POC (pink horizontal line), and Monthly VWAP (yellow). A break and hold below 900.00 could signal much more weakness to come, depending on whether we see increasing volumes on the decline (note yesterday's and today's volume spikes).

 

Will Reload Miners Later

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The completely-battered miners sector is bouncing, and I suspect it'll continue to do so to give precious metals some relief from all the selling pressure. However, the miners sector is chock-full of stocks that are begging to be shorted once the horizontal levels (formerly support; now resistance) are reclaimed, such as this one:

0221-anv

For now, I'm standing aside, but once the bounce is complete, it's time to short the living daylights out of such securities. Miners are doomed. Big time.

All Bears on DECK

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I have added Deckers Outdoor Corporation to my ridiculously long list of open short positions.

I've always had a strange disposition to this stock, mainly because I heard once that Oprah was the one that popularized this company's main product, which are those fuzzy UGG boots that some people wear.

The image of Oprah wriggling her fat, sweaty feet into the once-fluffy interior of a pair of warm boots, smearing bacteria all over its squalid interior, is unsettling to me. For this reason alone, it's worth shorting.

0221-deck

About Time Too (by Springheel Jack)

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Just as I was becoming concerned that SPX would rise enough to unravel the very nice looking interim top setup on the daily RSI, we have finally seen the initial decline that should mark the start of the decline from that interim top. SPX closed on the daily middle bollinger band and it's just possible that the decline is now complete, but the odds favor more downside and I'll be talking about downside targets today, putting off my look at the resistance levels at the 2000 and 2007 SPX highs for a few days. Here is the SPX daily chart below showing the hit of the middle bollinger band with lower bollinger band support now in the 1490 area:

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An Inconvenient Truth

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Wednesday’s
sell-off is just a taste of what’s to come…

Pay no attention
to what the press has to say.  Pay no
attention to what the Fed has to say. 
All is not well.  I said the same
thing before the subprime and housing fiascos, the Dow collapse to 6,500, and
the UK economic collapse.

No one trusts
this market. Volume is very low.  Traders
are still on the sidelines.  And the
billionaires are running scared.

Warren Buffett –
who is now complaining about ‘disappointing performance’ in companies like
Johnson & Johnson, Procter & Gamble and Kraft Foods – has been
drastically reducing his exposure to stocks that depend on consumer buying
habits.

Considering 70%
of our economy relies on consumer spending, that’s worrisome, to say the least.

John Paulson –
who made a fortune betting on the subprime disaster – is selling, too.  His hedge fund just dumped 14 million shares
of JP Morgan, for example, as well as positions in Family Dollar and Sara Lee.

George Soros
just sold massive positions in bank stocks, including JP Morgan, Citigroup, and
Goldman Sachs.

Just why are
these guys selling in one of the biggest rallies we’ve ever seen?

Because even
they know the truth…  They know the
market rally based on easy money printing has run its course. 

We’re not
recovering.  We’re far from it.

The press can
try to convince the sheep otherwise, but I’m not buying it.  I never have. 
And I never will.  I’m interesting
in making money for myself and for readers. 
I’m not interested in following the sheep off the edge of the
cliff.  And neither are these billionaires.

Tell me this.

If our economy is doing so
well, why are retailers closing their doors?                      

Best Buy is
forecast to close 200 to 250 stores.

Sears is
forecast to close 100 to 125 stores.

JC Penney is
forecast to close 300 to 350 stores

Blockbuster
is closing 300 stores and cutting about 3,000 jobs.

Hasbro may
be reducing its work force by about 10 percent.

Wal-Mart is
having a disastrous month.  The company’s
president of finance just said this is “the worst start to a month I have seen in
my 7 years with the company.”

Reader’s
Digest just filed for bankruptcy.

Atlantic
City’s newest casino just filed for bankruptcy.

There’s no
plan to solve Detroit’s financial nightmare, and bankruptcy could be around the
corner.

The CEO of
Town Sports International just said the company is struggling because consumers
don’t have “disposable income” any more.

And corporate
insiders are selling hand over fist.

Still,
the press would have you believe the economy is great.

What
will the press say when millions of federal workers face painful furloughs?

As
long as things look okay, that’s good enough. 
Right?

No…
not any more.

I’m
not a pessimist by nature.  I’m a
realist.  And I’m tired of watching Wall
Street railroad Main Street over and over again.

So
we’re fighting back… We’re making money playing by our own rules at Speed
Retirement. 

Getting
even,

Ian
L. Cooper

Speed
Retirement System