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.
Gold has been oddly interesting lately. Take a look at the chart below, and note in particular two items: first, see the magenta-tinted area in which gold briefly breaks below support. I think that’s a pretty interesting “tell’ that this support isn’t that solid. Second, look at the green-tinted area where gold should have kept marching higher; it didn’t. To me, that’s also a “tell” that there isn’t real strength behind the metal.
Along with the highly publicized loss of leadership from big tech, the US stock market is now in danger of losing another, and possibly more important leader, the piggies or banking sector.
While the weekly chart of BKX has not yet broken down, it is very close to doing so after sporting a negative RSI divergence for the better part of the last year. We should not jump the gun with bearish scenarios, but as always we want to be among those looking forward and ready, just like in 2007, which was the last time BKX-SPX began to roll over in earnest.
Here’s tonight’s watch-list for today’s trading.
Long Energy XXI (EXXI)
Yesterday was more tedious than I expected , though the bulls made some significant targets, notably the 50 hour moving averages on both SPX, now at 1873 and ES, now at 1868, so in effect at the same SPX level. The action yesterday looked somewhat bearish in the afternoon, and a new falling megaphone has been established, which I posted on twitter last night. If we see weakness this morning, which seems likely, then I will be looking for possible support at 1873 SPX. SPX 60min chart:
If it wasn’t for the sheer magnitude of the idiocy associated with what happens behind the scenes at most major banks one would just laugh. However, one can’t help but look at just the latest story to grace the headlines referencing Bank Of America™ and its now uncovered “oopsy” accounting and wonder should you laugh or be scared.
Suddenly it’s been revealed that all the “extra” money they had to bolster their balance sheets which allowed them to offer dividends, buy backs, et al actually wasn’t there. So much so that the Federal Reserve (supposedly the overseers that are responsible that such things don’t/can’t happen) has now rescinded the “all clear go ahead and pay out” to “Holy crap what?” (more…)