One powerhouse of a stock which is showing signs of weariness is American Express (AXP). Take note of how it’s already done some damage to its long-term uptrend, and how it has formed a small, but clean, distribution top.
Leave Home Without It
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.
Bank On It
I presently have 57 short positions, and 7 of them are banks. Below are the charts of the seven banks whose stocks I am presently short:
Modern Monetary Theory
In the book Modern Money Theory by L. Randall Wray, the author declares of MMT (that is, Modern Monetary Theory) that it will go through three phases of public opinion.
First, it will be ridiculed. Second, it will be violently opposed. Third, and finally, it will be accepted as self-evident. I’m not sure if it will play out that way, but I’m here for offer an essay which is probably straddling the first and second phases.
Interestingly, this prediction was word for word what a certain Elizabeth Holmes declared in this video when she was making her final, desperate bid to save Theranos from its inevitable failure.
(more…)World Weary
Navigating a market this wild can get exhausting. I’m typing this just moments before the opening bell, and I’m ready to search out a hammock. In any case, I’d rather have a market like this than just about every moment of the decade prior.
Keep a close eye on banks, financials, and brokerages. Look how interesting the recent activity on the financials ETF has been intraday:
Financial Relief
Let me set aside my permabearishness and say that I think financials are primed for a bounce here. Here is XLF:
Financials Finally Fail
This is the break that I and the two other surviving equity bears on the planet have been anticipating. Financials have broken the trendline established by the criminal intervention in the market Steve Mnuchin executed on December 26th. Now things get more interesting.
Financial Fault Lines
I have a couple of technical study sets called Max Sensitivity and Min Sensitivity. As you might guess, the “max” one tends to be very volatile. I was curious, however, since my belief is that banks are weakening, how the “min” study set looked with a couple of major financial funds. Here is XLF:
