Today is a very important day on SPX. Yesterday the bulls rallied it all the way back up to range resistance at 1874/5, the level seen at the last two rally highs and the neckline for what looks a lot like an IHS, but isn’t because the decline into it is too short. Nonetheless if that level is 1874/5 level is broken the ‘IHS’ target in the 1910 area will most likely be made. Looking at ES we may will see a gap over that resistance at the open, and as long as bulls can avoid that opening gap being filled, I would see that as bullish confirmation that the next move up towards my 1965 target from last June has now started. I have rising channel resistance in the 1910-20 area and rising steadily. If we see a big fail at this resistance today then my alternate bear H&S scenario is still in play on a break below the rising channel. SPX 60min chart: (more…)
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.
Pushme Pullyu
Dead Fred
I don’t make a habit of rejoicing at the death of a fellow human, but word of Fred Phelps’ demise warmed the cockles of my heart. The “Reverend” Phelps, who was revered by no one except his insane family members, was about as representative of Christianity as the 9/11 hijackers were representative of Islam. Having had some firsthand experience with sociopathic lunatics, I can only conclude that some individuals among us are simply evil. Now that Phelps has left us for the spectral plane, maybe he’s finally getting some badly-needed insight into the real truth, which was far afield from what he preached.
Two Ways Of Hedging SanDisk
Shares of SanDisk (SNDK) hit a 52-week high intraday Wednesday, as the stock was added to the NASDAQ Technology Dividend Index. For those long SanDisk, here are a couple of ways to hedge it over the next several months.
1) Hedging With Optimal Puts
3.8% cost. Uncapped upside.
As of Wednesday’s close, these were the optimal puts* to hedge 1,003 shares of SNDK against a greater-than-20% drop over the next several months with optimal puts. (more…)
Short Circuit
Having filled its gap on February 26th (see green tint), Jabil started to break down again. I shorted it soon after its gap filled, and last night, after reporting earnings, Jabil was very strong after hours. Well, not so much anymore. The red arrow is pointing to today’s bearish engulfing pattern. I am more confident about this short now than before, since even strong earnings can’t keep it propped up.
