I spent my teenage years in a little town in the East Bay of the SF Bay Area. It was a pretty conservative place, full of comfortably upper-middle class families whose idea of humor was closer to Rich Little than George Carlin. In spite of this, Slope’s patron saint had a show in our town (which, to this day, strikes me as pretty incredible), and I took advantage of the opportunity to see him for what turned out to be the only time in my life.
Slope of Hope Blog Posts
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Dow Theory is simple, it says the market should rally with Transport stocks. So lets break down the Transports. First the Transports was one of the few sectors that was green on Tuesday which is a bullish sign. Our indicator flashed this sector as oversold on Monday and has since moved away from oversold. The bounce on Tuesday supports further upside if it can get above todays high at 155.22. Looking at this chart, though the Transports are resting at some serious support and over the past two days has been able to stay above this cliff of death.
To play this sector with a normal ETF, is just as easy. IYT tracks this industry and has a similar chart. Any break below 153.50 is bearish and its bullish above 156.18. A move above 156.18 and 160 is very possible. The risk/reward here is not bad risking about 1.5% on the downside with a stop below 153.00 for a reward of 160+ on the upside.
In spite of the fact that, years from now, I believe this person will be held up as one of the most disastrous men in power in U.S. history, he is currently able to get away with the self-congratulatory title The Courage to Act.
Sorry, Ben, but if the United States actually had “courage”, it would have let Goldman Sachs, AIG, JP Morgan, and all of the rest of them go belly-up and engaged in an honest-to-God organic recovery, as opposed to the fake-fest you foisted upon the feeble. Shame on you.
As China ascends to the top global economic superpower (leaving the U.S. permanently behind, in spite of visionary leadership from the likes of Joe Biden and Nancy Pelosi), the chart of the stock markets from the middle kingdom are breathtaking. It sort of reminds me of the divergences that took place in 1999/2000 between big global markets, some of which were stratospheric while others had already topped out. This is only going to feed the frenzy of retail excitement in China, as their citizens continue to jump into equities feet-first.
Here’s today’s swing-trading watch-list:
Long Blackstone Group (BX)
I was talking yesterday morning about the likelihood that SPX would retest broken resistance as support and it took a while, but that was tested at the close yesterday. We could see SPX go a bit lower this morning but what we saw yesterday may well be all. My bull/bear line is at 2068/9 this morning, with the SPX daily middle band now at 2073.5, the 50 hour MA now at 2072.5, and the 5 DMA at 2070. SPX 5DMA chart: