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.

Bullish Breakouts

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Today (that is, Tuesday) was pretty damaging for any bears left out there. Everyone was bracing themselves for the Wednesday Fed meeting, but there was a one-two punch early on Tuesday that was unexpected in its scope: first, the Draghi capitulation, and second, the Trump-Xi meeting tweet.

A number of major cash indexes broke above medium-important resistance levels, putting more wind into the bullish boat sails. Here is the Dow Composite:


Synthetic Straddle (by The Director)

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One way to play for both a gain or loss in a stock is to buy a straddle. This involves buying a call and a put at the same time wherein a certain degree of gain or loss in a stock will result in profit, and if there is no or small movement in the stock’s price, there is a small loss that will increase with time. In addition the straddle does better in rising volatility, such as prior to earnings, and worse in pre-existing high volatility which is dropping.

Another strategy that can take advantage of a potential directional opinion, is to obtain a straddle with a mix of stock and options. One can use synthetics to achieve this.


Ready for Tesla

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I’ve been holding off messing around with Tesla, but the surge this morning was so strong, I went ahead and shorted it with a stop at 242. The green tint I’ve made is, I believe, a major topping pattern. The yellow tint is more of a buffer, so should we cross into it, I’ll wait until we get back up to the green. However, I’m not sure we’re going to get that far.