As with just about every other asset class, bonds have been bouncing strongly over the past week, but I think that – – again, with just about every other asset class – – the bounce is nearing an end. Take note of the descending channel bonds were trading within ever since last May. It broke the channel on June 19th, and I think the lower trendline is going to represent resistance now. We are approaching this trendline, as well as another spanning back to August 19, 2011, which I believe provides a strong pivot point to repel prices downward. (more…)
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.
Bond Bubble Blabber Blather………………..by BDI
Have you noticed that the extremely well respected bond fund managers Jeffery Gundlach & Bill Gross have been out in force all over the financial media in a concerted effort to assure us that the sharp spike in bond yields is nothing to get too concerned about? Anytime big league fund mangers are overtly delivering sure-fire batting instructions and pitching perfectly timed advice on the markets, my antennas go up as I become suspicious of a dastardly curve ball heading directly for the plate. Why now and why such persistent prognostic public pronouncements over the stadium’s loud speakers? (more…)
Unicorn Deathmatch
I posted a chart of the daily SPX vs NYMO since 2006 on twitter last night and I’ll lead with that this morning. The charts show 22 hits or very near misses of -100 on NYMO and below since the start of 2006, of which 10 showed marked positive divergence at the low. All of these lows with markedly positive NYMO divergence delivered strong bounces, and the last three of those divergences were seen at the main lows on 2010, 2011 and 2012. This is therefore a strong signal that this retracement low is in, and significant further downside on SPX without a rally that at least reached 0 on the NYMO indicator beforehand would be a rarity that has not been seen since the start of 2006 at the least. SPX vs NYMO daily chart: (more…)
Possible Retracement Low
I posted a chart on twitter yesterday showing the intraday low, and showing that it was a possible retracement low as it was both a test of broken rising wedge resistance (target 1965 area) and very close to a 38.2% fib retracement of the move up since November. Since then a bounce on ES has been trying to get established. Here is that chart that I posted intraday yesterday. SPX daily chart: (more…)
Meredith Whitney Abandoned Her Call Way Too Soon
It was a brilliant call, but she got cowed into submission by the powers that be. She was RIGHT. Unions have created an ungodly cost burden on cities and states. FIrefighters and police officers have NO business pulling down $200,000+ salaries. And bus drivers should NOT be paid six figures. But they are. Because of the unions. Period. (more…)
