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.
In my 2018 Market Forecast post I had identified important major support levels with respect to the Volatility/Index ratios of the S&P 500, Nasdaq 100 and Russell 2000 Indices as follows:
- SPX:VIX Ratio — 200
- NDX:VXN Ratio — 350
- RUT:RVX Ratio — 80
Since that date, these indices corrected by around 10% and their corresponding volatility ratios have produced a bearish moving average Death Cross formation on the daily timeframe, as price plunged below those major support levels.
The following is an excerpt from this week’s edition of Notes From the Rabbit Hole, NFTRH 488. For NFTRH bonds are not just an asset class ‘throw-in’ but instead are a key indicator set to the entire modern macro. Insofar as it may be time to use them for portfolio balance (I am currently long SHV, SHY, IEI & IEF), so much the better. Many could not wait to buy bonds during US ZIRP global NIRP operations, but today they pay better interest and have a contrarian edge with the entire herd bracing for a bear market.
We claimed appropriately bearish on bonds on December 4th, so you know this is not perma-book talking when we go the other way as yields hit our targets. (more…)
SPX and RUT both broke with confidence over their daily middle bands on Friday and such a break is a two day process. Bears get a potential ‘Get Out Of Jail Free’ card the next day if they can deliver a rejection candle that closes back below the middle band, and bulls need to deliver a second close over the middle band to confirm the break up. With SPX at 2773 at the time of writing and the middle band at 2721 and, with an hour of the trading day remaining, I am fairly confident that there is going to be no rejection candle today. This opens higher targets including possible all time high retests on both SPX and RUT. NDX is already close to an ATH retest, which now looks likely. Intraday Video from theartofchart.net – Update on ES, NQ and TF: (more…)
I would give away body parts if the entire equity market could be as consistently weak as General Electric. This poor dog falls almost every day. If you had bought GE twenty years ago and held on tight to this day, you would have made……….including dividends…….nothing. I can only imagine how many people have tried “buying on weakness” for the past year.