I’ve mentioned the Pier One analog countless times, and it certainly seems to be repeating its Financial Crisis Disaster beautifully:(more…)
Slope of Hope Blog Posts
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As we collectively try to fight the boredom of the end of the trading year, I offer you a simple and straightforward idea: shorting HYG with a stop at 81.25, just above its price gap.
What a week, huh, folks? And this is only the third trading day!
There’s a town here in the Bay Area you’ve probably heard of called Oakland. You’ve probably also heard the famous phrase about it uttered by Gertrude Stein: “There’s no there there.” I’m reminded of this quote because of the “truce” announced. My instant reaction was that it was a nothing-burger, which was met with screams and cries of distress that it was, in fact, An Awesome Amazing Deal. But it seems it’s starting to dawn on the rest of the planet that maybe this kicking-the-can-down-the-road exercise does, in fact, constitute “no there there”.
For a while last night, it truly seemed to be the case, although I’m sorry to report most of the red has been washed away. Interestingly, the gap between Friday (pre-truce) and Sunday (post-truce) was almost perfectly sealed on the NQ.
I’m sure you’ve all been following the news out of G20 (although perhaps not as obsessively as I have). I’ve also been looking at other sites where traders are chattering on about it. The widespread conclusion seems to be that we’re going to go roaring higher into the new week.
As we awaiting whatever happens when the bell opens on Monday, I thought we’d take some time to look at the important FAANG stocks and their price gaps. Now when I mention “price gaps”‘, in some cases they are truly gaps, and in others they are simply crucial price levels. If any (or all) of these are crossed to the upside, it means this group is genuinely healing. If not, the recent strength could be nothing more than a countertrend blip. So let’s go through them……….
First, there is the scandal-plagued Facebook (for each of these stocks, I have deliberately done a mouseover where the crucial price level is, so that is highlighted in each chart):
You may have read the news that General Motors is firing 14,000 workers (must be another benefit from all that manufacturing in America success we’ve been seeing). Although this is bad news for the 14,000 getting fired (to say nothing of their families), the shareholders love, love, love it. As a chartist, I wanted to point out to you that it makes for a nearly perfect gap-fill.