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.
There are a couple of classes of trading vehicle I swore off years ago: options and FOREX. From time to time, I’m tempted to give options another whirl, but I hold myself back. This happened earlier this summer, so I did a little experiment: I put a marker on a chart of an option I would have bought indicating my “pretend” trade.
Well, after a few days, the option shot higher, pushing up over 50%. I begin to reconsider my self-imposed ban on options trading. But you can see what’s happened since then (and remember, this is a fairly conservative option, not expiring until the end of the year!)
I know options work great for a few of you out there, and that’s just dandy. For me, this little exercise just reassured me that I made the right choice swearing off the things.
I took the family to Stinson Beach on Sunday, and I brought the drone along. There are some very nice scenes in here. I was going to set it to the Chariots of Fire theme but, meh, I’m being lazy.
Here’s today’s swing-trading watch-list:
Long American Express (AXP)
SPX is at a short term crossroads today, as Stan and I were discussing in Chart Chat yesterday. You can see the recording for that here. The option I outlined was a double top that would target the 2068 area on a break under 2080. That would be just above the 61.85 fib retrace of the move up from 2052. Stan was looking at a possible break up through triangle resistance into the 2120 area. We agreed it was a coin toss but so far SPX seems to be favoring the double top and retrace scenario. SPX 5min chart:
This is a comment cleaner, and little more, but I will say this: if there’s one core thing I’m worried about these days, it’s when the steady descent of crude ceases. This thing has been nothing short of spectacular. My dumb guess is that we’ll see the high 30s before we get any bounce-back. In any event, I haven’t seen a drop this steady in anything else for a while: