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.
Well, I guess the “R-Word” is off limits, so I’ll instead refer to the denizens of WSB as brain-dead. At least until the Association for Brain-Dead Dignity comes after me, at which time I’ll be foreclosed from using the “B-Word.” But, for now, brain-dead it is.
As most of you know (unless you, too, are brain dead) the WSB sub-reddit is crowded with degenerate gamblers and males in a state of arrested development. They are dreadful investors, and their hero is DFV, whose drug of choice, famously, was GME. It was one of those once-in-a-lifetime things, but attempting to behave like DFV is, I believe, akin to modeling yourself after someone who won the lottery. They got lucky, and it’s one-and-done, so it’s all a bit silly. Of course, WSB and its self-deluded victims would not exist were it not for the Fed’s wicked machinations, but this is what we’ve got to work with.
We only rolled out the awesome new Layers feature late last night, and I’m having a ball with it. As I mentioned, the one feature I really want to add is the ability to Save charts, so rest assured, that’s coming.
Let me offer an example I just did to show how Layers can be used. So let’s start with the sensible-sounding premise that interest rates have an influence on real estate. So I put the 15-year fixed mortgage in one layer and the IYR in another (note bene: I’m sure other mortgage rates might be better choices, but, meh, what the hell, I landed on this one). Importantly, I did a Flip on the interest rates, which inverts the scale (in other words, the bottom of the chart represents higher rates).
Already, we can see a very cool interaction between these two. Notice how interest rates seem to lead – – by a long time – -the real estate market?
As I keep saying, the only asset I am cheerfully bullish is gold, and it had another good day. Yesterday I made a big point about how the plunge in gold should not be seen as a failure, because it was merely testing support. It did so, and even though “someone threw a war, and nobody came”, Gold closed ABOVE its peak on Monday. Let that sink in. We are higher NOW than we were on the brink of war!
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Here we go again!
A few weeks ago, I posted a bear call spread on the S&P 500 (SPY). At the time SPY was trading for $454.97. Now SPY is back under $440, and our bear call spread is worth well-less than half of our original premium. As a result, our profit target was met.
As I state in every “Trade Idea” post, “I look to buy back a spread when I can lock in 50% to 75% of the original credit.”