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.
The Japanese Government has been monkey-hammering its Yen into toilet-paper, and the chart below of FXY (highlighted by Ms. Fox, whom you children-of-the-80s will remember) shows that a double-bottom might be forming. I’m not going to bank on it myself, as the currency wars are in full swing, but I at least thought I’d share this.
I often talk about the need, fairly early in any trend, to establish either a significant rising support trendline (in an uptrend) or a significant declining resistance trendline (in a downtrend). That is a key reason that I was looking for a strong rally here and I think those key trendlines have now been established on both SPX and RUT. The question now is whether those trendlines will hold or fold. If the downtrend is to continue then the RTH yesterday was the rally high and both SPX and RUT should turn down from there. If the downtrend is to break and open up a retest of the highs and a Santa Rally, then I’d expect those trendlines to break up today or tomorrow. (more…)
