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.
Look, I know of you probably have your stomachs in a knot about this strong rally. I believe with every fiber of my being this is going to burn itself out. Sure, it could push us to 4100 on the /ES, but don’t get fooled by the likes of Jamie Dimon. This isn’t some great new bull market. Do you seriously believe on the heels of the past 13 years, we’re ready to launch again? Watch this.
“That market drop was our last hope.”
“No. There is another.”
As many eons as I’ve been doing this, I never lose my sense of wonder about charting. A great example this week was Abercrombie & Fitch, from which I garnered 240% gains on the puts. I dumped my position swiftly on Tuesday morning when it crashed, and I’m glad I did, because it exploded about 25% higher on Wednesday. But check out where the peak was………..precisely at the same price channel which it had broken with such drama! I find that absolutely remarkable. Once again, support became resistance.
Home prices are still strong, but the strength behind those prices (AKA the volume) is on the wane.
OK, look. I can play the hero now and then. Or at least be a stalwart example in the face of adversity. But this is starting to get annoying.
Monday was a bad day. I stood fast in the face of it. Every morsel of cash lost on Monday can tumbling back on Tuesday. Huzzah.
Wednesday started off nice and red. Nothing dramatic, but red nonetheless. And yet the market rallied, going into turbocharge mode when they interpreted the (meaningless) Fed minutes to state that the Fed will inch up rates a mere 1.5% more and then be done with it. So stock traders gobbled up the ostensibly good news.
(more…)
