Some of you have seen this before. Some of you haven’t. I’ve watched it many times. If there was one thing that convinced me that I wanted to live in the world of trading, it was this 1987 documentary on Paul Tudor Jones: The Trader.
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.
I have written about Sotheby’s many times in the past, because it has the curious role of being basically the company catering specifically to Very Rich People. Let’s face it, folks like you and me aren’t bidding tens (or hundreds) of millions of dollars on pieces of art. In the past, Sotheby’s has been an interesting harbinger of psychological shifts in the market, but I must say, I’m not seeing it here. It just keeps blasting to lifetime highs. All that central bank money has to flow somewhere, I guess……..might as well be a $150 million painting.
Well, my tweet last night was spot-on:
If you look long enough, I think you can tease out a pattern to this madness:
A couple of weeks ago, I ran a SlopeCharts survey to find out what people wanted to see in my beloved SlopeCharts product. I was surprised to see that by far the most requested improvement was the availability of chart periods other than daily – – that is, weekly and monthly charts.
Well, they’re ready to use now for everyone! You’ll see this new item up on the SlopeCharts menu bar:
Price action on the following monthly chart of China’s Shanghai Index has been under the bearish influence of a very long-term downtrending Andrew’s Pitchfork channel since it peaked in October 2007 and bottomed the following October.
After a weak attempt to break out above this channel at the end of January of this year, it retreated and is currently dropping early Tuesday morning following President Trump’s latest threats several hours ago to impose tariffs on an additional $200 billion worth of Chinese goods in connection with their recent trade war. It has broken below its near-term major support level of 3000 that I had identified in my posts of April 9 and February 16.
If this index returns to its channel “median,” it’s in for one heck of a plunge! Look for a break and hold below its last swing low at 2638.30 to continue its current downtrend on this monthly timeframe. It’s already in downdrend on the weekly and daily timeframes following its failed channel breakout attempt and the momentum indicator is firmly in downtrend on all three timeframes. (more…)
Days like yesterday REALLY mess with my head, and only magnifies the distrust I have of this market on a day-to-day basis.
As you well know, Sunday night/Monday night was a sea of red. However, as has happened about 97.8% of the time over the past decade, the moment the opening bell rang, the Plunge Protection Team took over and healed the damage. What had started out as a handsomely profitable day turned out to be a wash and a waste of time.