How much longer can this beast fly higher? I’m thinking not much longer. Look at the trendlines I’ve drawn on the symbol below, IYR. Major resistance is coming up quickly.
Runaway Real Estate
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.
Yet Another Sinewave
Not that long ago, I never, and I mean never, bothered using the sinewave tool on any chart. These days, I’m becoming increasingly intrigued by the financial instruments which seem to conform to some kind of steady rhythm, and it turns out that my favorite ETF, the utility symbol XLU, has an intriguing relationship with this as well.
Minor ETF Review
The Best Post-CPI ETF Charts
The rally which took place on Tuesday, November 14th, following the very weak CPI report, was one of the biggest events of 2023 for equity bulls, if not the biggest. The Dow rose almost 500 points, the S&P rose almost 100 points, and the Russell 2000 climbed an eye-popping 5.44%. Below are eight exchange-traded funds (ETFs) in particular interesting setups following this mega-rally.
We start with the small caps, which have been range-bound at this point for years. The Fibonaccis have had an extremely powerful influence, acting as either support or resistance, and in just the past couple of weeks, and IWM has rallied from one Fib (as support) to another (as resistance). The price is just about at the midpoint, which should provide a meaningful barrier to further price ascent without some important new catalyst to propel it over the midline.
The Crucial Funds
It should first be noted – – nay, emphasized – – that these charts and the words about them are being composed the day before the monthly CPI number is released. Although the CPI was absolutely meaningless for years and years, it has now become an even more important data point than the jobs report, since inflation data has an outsized influence on market strength or weakness. Thus, if you are reading this any time after the CPI of November 14th is released, the conclusions offered may be moot.
Having begun with that important disclaimer, I will say that the ten charts of the ETFs that follow bear an important common element: they have all moved powerfully up toward key resistance levels. In almost all these cases, the resistance is represented by a simple horizontal line (or, its equivalent, a Fibonacci level). Some prices are closer to resistance than others, but on the whole it can be said that (1) the more of these that fail to cross above these lines, the better chance bears have of seizing control of the market again; (2) the more of these lines are crossed to the upside, the higher the chance the bulls will simply continue running roughshod over the bears through at least the end of the year.
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