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.

Big Swinging DIX

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I don’t hear many people talk about the Dark Pools Index, but here is a quick introduction. If I am understanding it fully, and that is a big IF, it is an attempt by a market researcher (who can be found on twitter under the handle @Squeezemetrics) to hazard a guess at the buying and selling demand being processed by market makers. I’m sure I cannot explain it fully and you would be better off reading the white paper at squeezemetrics.com. It is a quick five minute read and very interesting. All data is freely downloadable to play with as you please.

Generally speaking, when the DIX (Dark Pool Index) moves to the upper extremes, dark pool buying is a primary influence. When the DIX moves to the lower extremes, dark pool selling is the the primary influence. See for yourself.

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Key Gold Ratios to Other Markets

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Views of gold in relation to other markets and brief summaries thereof, with a focus on how it relates to the gold mining sector and the inflationary macro to come.

Gold/Silver Ratio

Gold/Silver is in a potential bounce pattern with RSI and MACD positive divergences. A bounce (if applicable) – which would likely come in unison with a counter-trend bounce in USD could accompany more broad  market pressure and possibly a brief whiff of deflation. As we’ve noted in NFTRH for much of 2020, silver has trounced gold and that is a bigger picture inflationary signal in the “metallic credit spread” (H/T Bob Hoye).

gold silver ratio
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Cloudflare Options Idea

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I have been absolutely thrilled at how the Slope community has embraced the TradeMachine Pro technology created by my friend Ophir (he’s done webinars here on Slope before, and if you’re an options trader, you should click the link and check it out). His latest idea is about a company called CloudFlare (symbol NET) which, coincidentally, Slope also uses to support its web infrastructure.

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First Retracement Target Hit

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In my last post a week ago I was remarking at how very stretched SPX was and how near it should be to a mean reversion move, and the mean reversion high was then made within a few minutes of my publishing that post. The minimum target for that mean reversion move, last reached after the June high, is a backtest of the 45dma, and that target was reached at the low yesterday. That may of course be the low for this retracement, and I’ll be looking at the setup for that today.

SPX daily vs 45dma chart:

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Divergent

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This chart is a simple but important one: the blue line represents the cumulative advance/decline line (available in Statistics from SlopeCharts) and the black line is the SPY. As you can see, there was a major divergence early this year (shrinking breadth in the face of a soaring market), and we’ve got an even more extreme instance of that right now.