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.

Russell Watching

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Happy Friday, Slope! We made it through another week, and thankfully for the bears it has been a solid red week thus far. My primary focus remains on the Russell 2000. The chart of IWM is shown below. I will continue to highlight two areas. First, there is a significant POC cluster coinciding with value high this month that is serving as key resistance at the moment. That area is highlighted in red. Second, the October lows of last month are serving as key support. This support goes back to the pre-Covid highs. As we venture out into the remainder of November, I will give you three scenarios:

  • The bullish scenario in my mind would involve IWM reversing back higher and breaking above value high at 177.2.
  • I think key support for IWM going forward is going to be the October 2023 lows of 161.67.  A consolidation scenario would involved retesting that low this month, but not breaking under it.  This would allow for some consolidation of the past few months to take place as we head into the end of the year.
  • The bearish scenario in my mind is to break under the October lows of IWM this month.  This is a capitulation scenario in my mind.  Under the October lows is a lot of open air for the bears to roam into.  How far and how fast that happens is a choice I’ll leave to you.

Men In Tights

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Robinhood (HOOD) reported earnings before the bell on Wednesday morning.  The stock responded by closing down 14% on the session.  Taking a look at the earnings report, here are the highlights:

  • Quarterly revenue rose to $467 million, but short of expectations of $480 million.
  • Earnings showed a loss of 0.09/share, which beat expectations.
  • Crypto trading dropped 55% year-over-year.
  • Transaction-based-revenue dropped by 11%.

The stock went public in the summer of 2021, and found an initial week-long bounce.  It’s been all downhill ever since for the stock.  From the peak of 2021 until today the stock has lost roughly 90% of its value.  Is the selling over, or are we in for new lows on HOOD?  Let’s take a look.