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.

Rally Time – Take #2

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As usual on Mondays I’m using the charts I did for theartofchart.net subscribers last night. The ES chart was capped before the globex open last night.

The rally that I was expecting on Thursday morning failed early, and it’s possible that the one that started on Friday afternoon might do the same, but if it doesn’t I am still looking for a right shoulder to form on the same possible H&S pattern that I was looking at on Friday. It’s a decent looking setup and I’ve detailed the three main rally options on the chart below in my order of preference. The third option is a possible retest of the swing high at 2111, and I’d give that option only 20% odds here, mainly because I know that it’s always best to keep the possibility of a retest in mind as an option. SPX 60min chart:

160506C SPX 60min

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Gold Sector Checkup After the ‘Inflation Trade’ Bounce

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There has been a lot of talk about how gold is not a good inflation hedge. Indeed, with the recent bounce in inflation expectations, this was shown to be true over a short timeframe, at least in relation to silver and other commodities. Gold sagged while the more inflation-sensitive commodities bounced.

If you are following the gold stock sector, please put aside analysis focusing an undue amount of attention on inflation. The proper fundamental backdrop for improving gold mining operational efficiency is one where economies and stock markets are weak and liquidity is constrained. That is when gold (risk ‘off’ liquidity) rises relative to those things that are positively correlated to economies.

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