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.
Just a quick comment cleaner here. There is much talk around these parts about broken bearish technical patterns, with last summer's failed head and shoulders top being a prime example. At a minimum, many discount the bearish signals they receive after a protracted bull run (who can blame them?). Take a look at this chart and guess what happens next. A long-term trendline was broken to the downside, and the hot price action subsequently kissed the underside gingerly… Too textbook? Too good to be true?
Once you've guessed, click here to see what happened next.
This concept is certainly nothing new or innovative, but for a lazy approach to investing it's hard to beat. Using two exponential moving averages (13 and 34 EMA) and merely flipping ones position at the crossovers we see the vast majority of broad gains captured regardless of direction.
At a minimum it's a great way to reduce your brokerage fees!
A few weeks back Tim asked Slopers to submit tools and
indicators that accurately capture turning points in the market, and
specifically the March 2009 bottom. I
don’t remember who posted the weekly stochastic of the NYSE Summation Index
(sound off!). I made a comparison of the
summation index signals with a weekly chart of the Russell 2000 futures
(RUT). Signals are based on a simple
crossover of the 5,3 Stochastic once it hits extreme levels. Since September of 2008 there have been eight
sell signals generated, and each yielded a drop of at least 30 RUT points. Looking at the chart most signals produced
All bets are off for this market. Since the sell signal was generated last week the RUT rallied 18 points!