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.

Gold Stock Correction on Cue

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Bull Market Far from Over

The gold stock correction was needed, is healthy and will provide opportunity

Let’s not belabor the point; the gold stock correction came as implied – and frankly, as needed – with several indicators of excessive counter-cyclical sentiment driving broad stocks down and gold stocks up.

That’s the bad news in the short-term (good news, if prepared). Beyond the short-term, the better news is that we are very likely seeing an upward adjustment in over-bearish broad sentiment as the stock market continues upward (also as anticipated).

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Silver Fades the SMA 50

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Silver Fades the SMA 50, Silver/Gold Ratio Still in Dive Bomb Mode

The Silver/Gold ratio remains extremely depressed as nominal silver slips its 50 day moving average

No reversal yet in the Silver/Gold ratio (ref. A Reversal in the Silver/Gold Ratio Would Be the Trigger). In fact, quite the contrary as the ratio looks to start its 5th day fading after a spike last week.

That in itself is not a big deal. It’s a normal consolidation of the spike. But the nominal silver price, which had been conspicuously strong above its SMA 50 (blue) despite the correction in gold and the miners, is slipping said SMA 50 this morning, pre-US open.

If that is an indication of things to come, the sector correction should continue and other areas in commodities/resources could come under renewed pressure.

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Gold, Post-Bubble

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Gold, post-bubble, is a reflection of just how bad things are, and it’s likely to get much worse

My long-held opinion is that gold does little aside from anchor a sound monetary view in a Keynesian debt world gone mad. For decades, as the Keynesian way (credit/debt leveraged for growth) has been THE way, it has come to be taken for granted by the masses.

Hence, the pervasively accepted notion of a centralized monetary authority that manipulates interest rates – thereby manipulating money – in service to micro-managing an economy that should be left to its own natural devices (a quaint and seemingly out of touch notion, I grant you).

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Gold Stocks & Gold/Silver Ratio

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Many gold bugs fail to understand the interplay between gold stocks and the Gold/Silver ratio

Misconception: noun; a view or opinion that is incorrect, based on faulty thinking or understanding

It has never failed. After the blessed 2001-2004 period the “misconceptions” game took over the precious metals as silver took leadership over gold (2004-2007), gold under-performed many commodities and “inflation trades” and the HUI/Gold ratio topped and declined for a long dirt nap, in which it is still snoozing.

That was damage done to the gold mining sector’s internals (even as it continued to rise nominally) by a pervasive inflated macro that was working to the benefit, however moderately, of economies. The HUI/Gold ratio (HGR) declined as it should have.

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