Some people are more fun when they’ve had a few drinks. I, on the other hand, am a lot more fun with the market is in a free-fall. Those of you who watch me on Tastytrade probably know this already. I’m cheerful, chatty, and chipper when the market is getting wiped out. However, when talk of stimulus, easing, and more government whoredom sends markets sailing higher, and my own readers (particularly those with interchangeable names) start tossing about terms like “beartard” (on my own blog; have you no decency, at long last, Senator?), my mood darkens considerably.
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.
Part 2: The Inevitable Crash (by Wim Grommen)
Splitting shares fuels price-earnings ratio
The increase in the price-earnings ratio is amplified because many companies decide to split their shares during the acceleration phase of their existence. A stock split is required if the market value of a share has grown too large, rendering the marketability insufficient. A split increases the value of the shares because there are more potential investors when they are cheaper. Between 1920 – 1930 and 1990 – 2000 there have been huge amount of stock splits that impacted the price-earnings ratio positively. (more…)
Harry Boxer’s Charts of the Day
Swing Trading AMBA AJG CFX XRAY IONS
The Great Escape
Given gold’s grinding bear market (September 6, 2011 through December 17, 2015, a period of over four years) , it’s not surprising that investors don’t trust the strength that gold found over the past couple of months. After all, there have been plenty of counter-trend rallies over that long, grinding drop.
My view, however, is that the February16th breakout above the channel I’ve drawn made a lasting directional change. The monster surge we saw last week had to be digested somewhat (such as yesterday), but I truly think we’re in a new bull market for gold, and the fake-out moves are going to be in the downward direction, as opposed to upward.
