Slope of Hope Blog Posts
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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).
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:
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.
Price has fallen to just above major support at 95.00 and the Momentum indicator is still above zero on the following Weekly ratio chart of SPX:VIX. A break and hold below 95.00 and the zero level could signal that a big decline is in store for the SPX.
I'm mindful of my last comments on the VIX.
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.
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:
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
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.
just sold massive positions in bank stocks, including JP Morgan, Citigroup, and
Just why are
these guys selling in one of the biggest rallies we’ve ever seen?
they know the truth… They know the
market rally based on easy money printing has run its course.
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.
forecast to close 100 to 125 stores.
JC Penney is
forecast to close 300 to 350 stores
is closing 300 stores and cutting about 3,000 jobs.
be reducing its work force by about 10 percent.
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.”
Digest just filed for bankruptcy.
City’s newest casino just filed for bankruptcy.
plan to solve Detroit’s financial nightmare, and bankruptcy could be around the
The CEO of
Town Sports International just said the company is struggling because consumers
don’t have “disposable income” any more.
insiders are selling hand over fist.
the press would have you believe the economy is great.
will the press say when millions of federal workers face painful furloughs?
long as things look okay, that’s good enough.
not any more.
not a pessimist by nature. I’m a
realist. And I’m tired of watching Wall
Street railroad Main Street over and over again.
we’re fighting back… We’re making money playing by our own rules at Speed