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.
Crazed Kamikaze Counterfeiters…….Evil Plan 105.0 (by BDI)
Well, my fellow Slope-a-Dopes, your selfless Idiotic Savant servant, whom is securely chained to his desk, has spent a significant part of the long weekend, perusing nearly every finance blog on the world wide web for you. Therefore, I can reliably report to the SOH, that the overwhelming consensus out there in the financial blogosphere, which has now reached a nearly universal feverish pitch, is boldly & proudly heralding that a most encouraging new economic dawn is finally upon us. It seems, a pristine permanent plateau of prosperity has been patently perfected.
Bonds Continue Breakdown
Sooooooo……..I thought all those trllions of dollars that Bernanke sent us into debt for were to keep interest rates low? Looks like the trend is reversing pretty hard. Well, don't worry. I'm sure higher interest rates won't be a problem, given the $16 trillion in debt that we owe. Oh, wait a second…..
Leaning Short (by Springheel Jack)
SPX closed another day of riding top of the daily upper bollinger band on Friday. Moves like this can last a few days, and in another three days SPX could test the September high doing this without breaking the current rising channel. I'm expecting to see some retracement before that though, and when we do see some retracement the main target will be the daily middle bollinger band, currently in the 1430 area:
Breaking Up (by Springheel Jack)
This has been a very impulsive move up from the low last Friday. Statistically yesterday should have been a retracement or consolidation day but instead we saw a strong move up and SPX punched through the daily upper bollinger band and closed well above it. So where does that leave us this morning?
These strong punches above the daily bollinger band are relatively rare, but they still happen fairly regularly. Since July 2011 there have been five previous instances where this happened as I have marked on the chart below. Of these five , three were close to significant highs but not one was immediately followed by a retracement of any significance. Three saw flat closes the next day with the other two closing significantly in the green. Historically there is therefore no reason to think that we saw any kind of significant high yesterday. Here's how that looks on the SPX daily chart:
