The support level on the ES I was so worried about in Tuesday night’s video turned out, in the end, to fail, thus negating the prospect of an inverted head and shoulders pattern to save the bulls:
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.
Allow me to grumble a moment. In the course of trading today, my trading computer unexpectedly “dinged”, and I saw I was just stopped out of Morgan Stanley (MS). This didn’t make sense to me. I glanced at my spreadsheet, and my stop price was miles away from the price. However, there was a momentary and inexplicable spike in trading. I expect this kind of nonsense with thinly-traded issues, but not the likes of Morgan Stanley. I got back in, but I was pissed. I took a loss on the former position, and I paid a worse price for the new one. I have no point here. It just bugs the hell out of me.
I am an enormous Stanley Kubrick fan, and I spent much of the trading day watching videos about the genius and his work. Here’s one I liked in particular that I wanted to share with everyone here:
I had been joking for weeks now that Bitcoin seemed to be stuck at precisely $6400. Its volatility has basically gone to zero. Whereas a year ago the entire world was OBSESSED with crypto (and all the scamsters and con artists crawled out………..) now it’s quite evident this technology was simply a solution in search of a problem (……..a problem which apparently doesn’t exist) and the entire “industry”, if one dares use such a term, is collapsing. $BTC has broken support.
The crucial support level I highlighted in last night’s video has been breached.
Due to the California wildfires, and their associated liability, Pacific Gas & Electric has gotten absolutely torched, having lost a heart-stopping 70% of its value. This is a UTILITY company, people. If you’ll look at the left portion of the graph, it has suffered such shock events before, only to come roaring back. I’m not going to do it myself…………..angels fear to tread, and all that………….but you might consider if this is a “blood in the streets” type buying opportunity. As General Electric has proved, though, just because something looks cheap doesn’t make it a bargain.
The following is excerpted from the Opening Notes segment in this week’s edition of Notes From the Rabbit Hole, NFTRH 525 (out on Sunday, November 11). It pretty much came out of nowhere after I did a comparison of Google searches for “inflation” and “deflation” while checking Google Trends for another aspect of the report.
The Google Machine Inspires a Discussion about Inflation & Deflation
Switching gears, while I was in the Google machine I decided to compare two terms that are at the heart of our investment management going forward; “Inflation” and “Deflation”.
It is no surprise that inflation is always much more often searched for because well, they are inflating in one form or another constantly. Whether it is through outrageously experimental monetary policy under the Bernanke Fed or supposedly sound fiscal policy under the Trump administration, it is all designed to raise prices and enrich asset owners, while leveraging debt (which is where the potential for deflation comes in). (more…)