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.

Tesla’s Good Behavior

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I think one would be hard-pressed to find a financial instrument as chart-compliant as Tesla. It behaves itself beautifully with respect to its Fibonacci retracement levels and major trendlines, and what has transpired over the past couple of weeks illustrates that neatly.

The stock peaked (medium-term) on the last day of September, tagging a descending trendline that commenced at its lifetime high of $414.50 about 35 months ago (!) I suppose this must have been excitement about the 10/10 event. It has lost about 15% since then, and now I believe this is an area of strong support (green tint representing the trio of Fibs in this zone).

The IYR Fibs

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Fibonaccis are cool, but they only seem to work with a handful of financial instruments. It tends to be a hit-and-miss game to figure out which these are. In my estimation, one of the most “obedient” financial instruments with respect to Fibonacci Retracements is the IYR, the real estate ETF. We have seen these lines provide potent levels of support and resistance for literally years at this point. The most recent occurred on Friday, when it blasted right up to its 78.6% level, which it hasn’t visited in 27 months (!).

SPY Fibonacci Support

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A few days ago, I wrote about the remarkable Fibonacci levels that had been defined around the SPY. I noticed that this morning’s low perfectly tagged the 78.6% level (which, last week, acted as resistance for a couple of days).

My view is that important resistance at the gap, represented by the red arrow, will not be breached. The key at this point, clearly, is to get back to the other side of that Fib level so we can start the march toward 503.97, the next Fib down, and a healthy 300 /ES handles away.