Earlier today, I sold the entirety of my XLF puts, in spite of the fact they don’t expire until January 2020. I’d like to get in again at a good price. But I felt it was an opportune time to scoot, based on the trendline support.
Meat Helmet
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.
Financial Distress
It was with some concern a few days ago I expressed in a post to my Gold and Diamond members that the financials were breaking to the upside. The failure of the XLF is/was an important part of the prospect for any downtrend in equities. As of this writing, this breakout remains in place, but XLF demands close and constant observation.
Financial Indicators
Looking at a trio of overbought/oversold indicators, set to their slowest parameters, the financial sector definitely seems richly-valued.
Financial Hazard
I’d say the biggest risk for the two or three bears left on Earth right now is the financials, shown below in the form of XLF. Notice that horizontal I’ve emphasized at the 27.33 price level. We’ve got a clean IHS below it, and should we cross 27.33 to the upside, that sets up the pattern to pierce the descending trendline (yellow tint), at which point it would be like a 42-gallon drum of gasoline on the bullish fire.
Wells No-Go
Financial Support
I have taken profits on a portion of my bank shorts, as I think we reached intermediate-support. The breakdown continues, but on some of the more “stretched” items, I decided to head for the Exit and intend to return later.
Perfecto
I had a terrific day thanks, ironically, to the King of the Wimps, Mr. Jerome “please don’t’ tweet something mean to me., Mr. President” Powell. The man (and I use the term loosely) completely and utterly caved in to his bullish masters (clearly the man is a “bottom“). The markets absolutely soared (see green below). But, as proof of a vengeful God above, the entire gain was destroyed and flipped red.
