Just read Tim Knight's post. Must agree this has been a challenging month. We have gone from seeing a Bear Flag … morph to a Wedge and now price has morphed this to an asending channel. It's a bit much, but one has to expect something like this when price is in a range. Looks like we are now breaking out of that and I would expect to see moves higher. Seems like there is nothing to stop the $SPX from moving up to the 1257 level.
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.
Caution, Euro-Bulls – Analog Worth Watching
Two Words
In my opinion, folks gobbling up equities at current prices can be described with two words: (a) In; and (b) Sane. It's as if all the reasons that equities were plunging lately suddenly were erased from the whiteboard.
Now, I do have some sense as to how things can get temporarily oversold, which is precisely why, mid-Tuesday, I covered the vast majority of my positions. The idea to short bonds has been working out nicely, and as I've said repeatedly, the preponderence of short candidates I follow are far, far too away from their stop-loss levels to make them interesting to me.
CITI Vix Triangle Hunt
I received an interesting email last night which was a forwarded warning from CITI to clients warning of a triangle on the Vix suggesting that the Vix might spike to new high very soon while equities fell hard accordingly:
The Apple/Market Connection
Friend-of-Slope and good buddy of mine Serge has been on a tear lately. He shorted a ton of silver and gold and almost the exact top (covering yesterday morning, and then going long!), and he's the only other blogger I know who irks me because his eye is so good.
Yesterday he emailed me a fascinating chart of how AAPL is, historically, the last stock to puke before a full-blown market collapse. AAPL is still, incredibly, over $400 per share, and it is universally regarded as the stock that will never go down (hell, even *I* dont' touch it).
But the simple fact is that when – – not if, but when – – AAPL finally starts falling, it is going to wrap its gigantic hands around the stock market and pull it into the icy depths of the Pacific Ocean with it.
