From my colleagues at tastytrade……..
Volatile Sectors
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.
Haberdashery
Wow, Monday was so annoying! Just when all holy hell was breaking loose, it reversed and closed at the day’s highs. The permabull site Zerohedge celebrated the event, saying it was because of the (should be illegal) buybacks coming. Typical ZH. Always looking for another new high.
Let’s spend the evening going through ten important ETFs. I’ll just share a few words on each.
The diamonds are at a decision point. The massive bullish pattern (green) is being challenged by a topping pattern (formed over the past couple of months). If we do fall, I’d look toward that trendline for main support.
The Gap Store
The ETF for retail (symbol XRT) failed its breakout several weeks ago, and it is approaching its price gap. I’d say this is a solid bearish position so long as it does not violate that price gap level.
Yan Can Short
I have purchased October 27 2024 $27 puts on FXI, the ETF based on the Chinese stock market. I’ve got a stop-loss of 26.26, meaning I’ll exit should it push anywhere above that level.
Counting on Correlation
One of my more painful memories as a trader was from many years ago, in which I had been aggressively bearish against the Chinese market. I forget the precise circumstance, but after a long while of the Chinese market just refusing to go lower, I finally surrendered and took my loss. At the time, I had been speaking about this position openly, so my friends knew about it.
Anyway, I went on a ski vacation, and during that vacation the Chinese market got absolutely nuked, and a close friend of mine sent me a congratulatory note, stating how happy I must be that everything had worked out. I was so humiliated, I didn’t have the heart to tell him that the wonderful wipeout in China didn’t do me one bit of good. It felt awful to be the cause of my own misfortune.
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