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.
Moments ago, I decided to take profits on Costco (symbol COST) because my March $550 puts have a 75% profit and they are announcing earnings on Thursday after the close. Just before I clicked the Sell button, however, I glanced over at my spreadsheet and noticed that 94% of the value of my puts was intrinsic. In other words, I’m paying virtually nothing for the uncertainty between now and March 17, which is over 100 days from now! I’m going to therefore stay put. It COST goes rocketing, oh, well, too bad, but my rational for dumping based on the earnings has been dispatched. I remain in position.
What a delicious treat it is to see all this red on the screen without a reversal. It’s particularly heartening since the mindless equity bulls have pushed things so high, providing so much open air beneath. One key ETF I wanted to point out was KBE, the regional banks fund, which is slipping out of its consolidation zone.(more…)
Here’s an interesting chart – it shows (black line) the cumulative advance/decline line along with the standard trio of exponential moving averages. Yet another piece of evidence that this market is laughably overbought.
Chinese optimism, huh? Chairman Xi, eh? Uh-huh. Here’s another short candidate: