I did this post on Centene (CNC) two weeks ago, in which I described their chart as “a top spanning half a decade”. Well, it’s getting blown up after hours by over 20%, so I’d say that wasn’t a bad guess!
The Megatop Flops
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.
Navigating DIA with Bear Call Spread
The Dow Jones (DIA) has been on a tear, surging 5.5% over the past seven trading days and 23.5% since the lows, shaking off any lingering bearish sentiment…for now. Market indicators have swiftly flipped from cautious to exuberant, reflecting a rapid shift in investor mood. However, my focus isn’t on the market’s emotional swings, bullish or bearish chatter is just background noise. Instead, I’m zeroing in on DIA’s current overbought conditions over numerous time frames, which signals a potential opportunity to fade the rally using a disciplined, high-probability approach.
With DIA trading around $445.50 as of July 1, 2025, I’m eyeing a bear call spread with a 30- to 50-day horizon, aiming to capitalize on this overbought state while maintaining a margin of safety. My goal is to structure a trade with an 80% to 85% probability of success, exiting well before the August 15, 2025, expiration to lock in profits early.
(more…)The U.S. is Not a Capitalist Country
Under the Federal Reserve system, the U.S. is not a capitalist country, it is a socialist welfare State for the elite, compliments of inflation
Socialism For the Elite, Not Capitalism
The distinction between the United States of America’s version of ‘green’ Socialism and what is traditionally known and reviled as ‘red’ Socialism is that the recipients of the welfare are wealthy asset owners/investors. You see, it’s okay when Socialism serves the ruling and majority classes.
You own a home that has appreciated in value to bubble proportions? You’re an asset owner and your asset has been inflated in perceived value, compliments of the Federal Reserve system. My wife and I sold our bubble asset a year ago at what I believe was the top of the market. I guess you’d call that bubble “Capitalism”.
(more…)Big Beautiful Shrill
That was one strange day we just went through. Between the Trump/Musk war, the no-deal-for-Japan, and the BBB passing the Senate, there was a news avalanche that buffeted the market all over the place. The /RTY, sadly, went into full blown squeeze mode. I dumped my IWM puts (7% loss) but re-entered just a simple short-sale on IWM at decently-high prices. Still, we have got to break back below the green line for this to have a prayer.
Speed Kills
Here is as diagram illustrating the supposedly time benefits of using AI for various tasks. Rest assured, everything you see from me on Slope is still my writing, even if it takes a while!
