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.

Mid-Day Minute – QQQQ & SPY (by Mike Paulenoff)

By -

The rally in the PowerShares QQQ (NASDAQ: QQQQ) since last Friday’s low at 42.63 has recovered about 20% of the entire down-move off of the Jan 11th high at 46.80, which contrasts to a recovery rally of about 35% in the S&P 500 Depository Receipts (AMEX: SPY). Whereas the Q’s led the charge on the upside in last year’s powerful, relentless multi-month advance, so far during 2010 they have led on the downside and have underperformed during the current upmove. Let’s notice that the Q’s are approaching a test of the January resistance line, now at 43.70. The SPY hurdled its equivalent down trendline yesterday afternoon at 108.90 (the SPY is now at 110.06). I will be interested to see if the Q’s have “the right stuff” to hurdle, sustain and accelerate to the upside from the trendline. If not, then let’s be prepared for sellers to re-emerge in the tech sector with a vengeance. In any case, my optimal target window for this rally in the Q’s is 44.00-44.25 prior to my expectation of a downside reversal.

Mid-Day Minute (by Mike Paulenoff)

By -

While my near and intermediate term work argue for still lower prices in Goldman Sachs (NYSE: GS) into the 146-144 area next, the public anger and political bashing of the company coupled with increasingly powerful oversold momentum readings suggest that a tradable low is approaching fast. This means that should GS reverse to the upside from around 145, I would not be surprised to see a richochet rally to 155-160, prior to a resumption of medium term weakness that projects towards 144-140.

As of this moment, I have no desire to "catch a falling knife," but I am on the lookout for a reversal and trading opportunity in the upcoming hours.