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.

The Horrible Hole

By -

I’ve had my fair share of horrible memories in life (hey, that’s a cheerful way to kick off a post, isn’t it?) but one that stands out as one of the worst was September 1, 2010. I’ve mentioned this date before, because it was a searing, horrible experience for me.

At the time, I was very, very aggressively short the market, and I (very naively) thought that, with interest rates at 0, there was nothing left for the Fed to do. Ummm – – wrong! As we all know, the Fed really has no limits as to what it can conjure up, and Bernanke unveiled a massive quantitative easing program. Trillions of dollars later, we all can plainly see that it didn’t work (although the man still gets paid a quarter million bucks to make a single boring speech), but at the time, it was just the tonic the stock market needed. (more…)

Anything But Precious

By -

Three words spring to mind. Just three words: Precious. Metals. Suck.

The most damning evidence recently is that during the market chaos on Monday, precious metals were weak. And during the market strength/relief rally recently, precious metals have been even weaker. So: damned if you do, damned if you don’t.

I was cheerfully short gold yesterday. I covered at a good profit. I stated on my Tastytrade show that I was “no longer bearish” on gold.


Lower Band Bungee Jumping

By -

Yesterday was a classic lower band ride day with a touch of the 2SD daily lower band, an AM high that failed, and a gap fill and lower low. The obvious target is still the 1820 area and as long as the lower band ride continues then I think we may well make that target today. SPX closed back within the 3SD lower band yesterday, so SPX just missed a record breaking three consecutive closes below that.

For today I’d be looking for an AM high that would ideally test the daily 2SD lower band which closed yesterday at 1927. Any high under Monday’s high at 1954.09 is theoretically acceptable but I’d be getting edgy about the short case on a break over yesterday’s high at 1948.04, and would recommend being very careful with shorts on any break over 1954.09, as that is possible double bottom resistance. SPX daily chart:

150826 SPX Daily Lower Band Ride