Here’s today’s swing-trading watch-list:
Long Wal-Mart Stores (WMT)
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 Torque Awakens
Well, naturally it’s a little disappointing to have sold off my energy longs yesterday and see crude pushing even higher today, but what can ya do. My portfolio is still in Bear Lite mode (50% cash, 50% distributed amongst carefully-chosen equity shorts). Regarding crude, the horizontal I’ve drawn below represents reasonable resistance at the moment. And as crude goes, so go the markets.
The Composite Counts
Incredibly, it was just over three weeks ago that the Santa Claus rally had exhaled its last breath, and we begin a breakdown that has been thrilling, riveting, and exhausting. December 30th seems like a lifetime ago, but it wasn’t, and we moved in the span of two weeks to price levels I thought would take months to achieve.
I want to make one simple but very important point, however. There may be bounces, sure – – maybe even a strong one or two. But the damage that has been done to the charts is massive, and a good hard look at the Dow Jones Composite, shown below, illustrates quite clearly that not only is the pattern complete, but the price action is beneath that pattern. I am more confident of my 1577 target on the S&P 500 this year than ever, and I think 2016 is going to be the best trading environment for chartists since 2008.
Canadian Dollar Points to Reversal in Crude
One signal that Crude Oil could be putting in a significant low is being flashed by the Canadian Dollar, which has reversed from its plunge versus the Dollar.
Let’s notice on the lower chart that USD/CAD rocketed through its upper-channel boundary line one week ago, followed-through to the upside as Oil plunged beneath $30, but has reversed sharply (USD/CAD) from nearly 1.47 to 1.42 (CAD has strengthened)– and has pressed back inside of the upper-channel line… suggesting that Oil could be poised for a pop to $30-$31 in the upcoming hours.
