Oil broke below support today but managed to close back above it. Key support for oil is at 48.46. What makes this level important is that it is the base of the descending triangle that has formed. It is make or break time for this pattern, as oil nears the sweet spot of this pattern. The key levels to watch now are the 50.15 level and the 48.46 level. A break above 50.15 voids this pattern. While a break below 48.46 and more importantly a close below it, confirms that pattern. The descending triangle provides a potential move of about -10% if it was to break. This would send oil down $44. Keep an eye out because if Oil sells off it just might be that catalyst that gets this market to sell off further. This pattern is also seen in USO. (Click on either chart for larger version): (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.
I’m still very much positioned for further market weakness, and I’m hoping to hang on tight until the VIX gets back up to about 23 or so. Below are a few targets that I think would be reasonable in the face of a sell-off. First, the Dow: I’m looking for support just above 17,000:
Here’s today’s swing-trading watch-list:
Short Bloomin’ Brands (BLMN)
Although I’ve never been to a Marie Callender’s before (which may explain why I weigh well less than 300 pounds), I remember their old slogan: “Come for the food, stay for the pie.” Slope is somewhat like that: people come for the charts, but they stay for the comments.
Indeed, the comments section is the bedrock of Slope’s popularity. Morning, noon, and night, 365 days a year, people are chattering away. I’ve been getting some pushback for doing too many posts, which tends to break up conversations and spoil the rhythm. Yesterday, for instance, I counted no fewer than a dozen posts (two of which were for Slope+ members only). I agree, that’s just too many.
Umm, what’s the deal with making woman cab drivers recently? I did an entire post yesterday about the self-congratulatory email that Uber sent, pledging to put a million (!) women behind the wheel. And now this just appeared on my Twitter feed:
If nothing else, let me offer you this solemn assurance: your driver won’t look anything like the photo above. Promise.
I posted a slightly earlier version of the chart below on twitter yesterday afternoon talking about the falling megaphone from the H&S right shoulder high. SPX dribbled down for the rest of the day SPX but as long as megaphone support holds this morning the next obvious target is at megaphone resistance, currently at 2072 and falling at about 11 points per day. 5min chart: