Yesterday evening, in what is probably the longest “premium” post I’ve ever written, I shared this chart with my Gold and Platinum folks to illustrate what I felt was a very strong level of support on the /ES market, in spite of the fact that, as of last night, it seemed the entire financial world was going to collapse.
And, after a relatively short night of sleep, I woke up at a little before 5 a.m. and grabbed my computer to see, sure enough, the following:
In just a few hours, the /ES has rallied about SEVENTY POINTS based on nothing but the efforts of the Plunge Protection Team.
So……..am I disappointed? Pissed? Annoyed? Nope, nope, nope. This is precisely what I expected. I showed you the support zone, and that’s PRECISELY where it held. For now.
But let’s take a moment and consider the name of this website, the Slope of Hope. I’ve never really asked, but I assume everyone here knows the source of that. But just in case you hang out in a cave (which, as a bear, maybe you do), let me explain: one of the most famous maxims of the investing world is that bull markets climb a wall of worry, and bear markets slide down a slope of hope. As everyone’s most beloved permabear, I decided naturally to name my site based on this maxim.
You see, in a bear market, “hope” has always been the fuel that powers the counter-trend rallies, and in this environment, in which every single human being on the planet has been spoon-fed a poisonous diet of reassurances that there really is no such thing as “risk“, HOPE is in such abundant supply that it’ll last for YEARS before these blinkered Philistines finally decide “no mas!”
Because as trouble as that CNBC-style “we’re well off the lows!!!” doe-eyed rally might seem, it is, as I always say, all about context. And the exact same /ES market also looks like this.
That red channel is both literally and figuratively the slope of hope.
There hasn’t been a moment in the span of the year 2022 when I’ve allowed myself to think, “OK, cool, no one is going to interfere with all this selling. We’re home free!” :Paranoia, in moderation, is valuable. But I simply wanted to make clear as head toward the opening bell of another lunatic week, that the name of this site has deep meaning, and its never been more appropriate.
So…………..limber up for the battle ahead.
