The SPY has, at long last, sealed up its election day gap. It’s getting a little uneasy staying aggressively bearish short-term.
Election Gap SEALED
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.
Home Alone
My homebuilder bearish position is doing fantastic, but I note that it sealed up its price gap beautifully on Friday, so I took partial profits.
Super Right Triangle
I have purchased August $67 puts on Super Micro Computer Inc. (SMCI, whose name sounds straight out of 1982). It has rallied about 200% over the past three months, largely out of joy that it isn’t going to get delisted (which was a real concern then). My view is that the gap at 65.86, as well as the descending triangle, make a formidable right triangle top, and that this obscene rise in price is close to an end. I might be a day or two early with this one, but that gap level is the key.
Deal is Sealed
Twenty-four hours ago, I did a post called Sealing the Deal in which I pointed out the importance to the market as a whole for the NVDA gap to be sealed. Well, it did so (and, just to be a smart-ass, the market decided to get cute and very briefly pushed past the gap, even though this was utterly unnecessary and uncalled for).
Sealing the Deal
Just a quick “thank God another holiday is behind us” post to say that, as I’ve mentioned daily, the NVDA gap is crucial. It also happens to be exceptionally close. Here’s the daily chart (which doesn’t include the trading going on pre-market).
