Originally published on TheTechTrader.com.
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.
Take a Seat
What Is The Fed REALLY Saying?
Is the Fed really saying that their present economic monetary policy dictates that they treat current economic conditions like they had to in March of 2009 (re: their decision today to leave Fed Funds Rate unchanged at zero to 1/4 percent)?
If so, then what does that say about the health of U.S. banks? Does that mean they’re at the same stress levels as they were in 2009?
If so, then one could rationally conclude that the S&P 500 Index should not be trading 1,323 points higher than it was at the March 2009 lows, as shown on the Monthly chart of the SPX below.
Fed Shocks World
A few minutes after the close yesterday I tweeted an H&S target in the 1953 SPX area on a sustained break under 1986. With the large gap under the H&S neckline overnight, that’s a target worth remembering today.
The market has now had a few hours to digest yesterday’s revelation that the Fed is still as fearfully timid about even a slight push on the economic brakes as it is recklessly bold at flooring the accelerator at the slightest sign of trouble. Having climbed back onto my chair after falling off it with the shock of the announcement that the Fed is still too scared to raise rates by even 0.25% six years into this ‘recovery’, I’ve been looking at the impact of this momentous news on the pattern structures on the equity indices.