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.
So Here We Are Again
Every so often I talk about the way chart patterns form and how they can evolve, and I have some very good illustrations of what I mean by that to show you today.
When rising wedges form in a trend and break down, sometimes they are just expanding as they rise and, when we saw breaks down the initial rising wedges from the April lows on SPX and QQQ a few weeks ago, I was talking about how if further levels above were reached then the wedges were just expanding and I would redraw the support trendlines as unbroken. That would create a new inflection point as those new patterns broke down.
What I am looking for in these cases are high quality resistance trendlines to form, either extensions of the initial wedge resistance trendlines or new trendlines, and I have three very high quality examples of the latter to show you today.
(more…)Tidal Wave Time
Good morning, one and all. It’s an exceptionally quiet pre-open, with the /ES up all over 0.05%, and yet with the FOMC looming and MSFT/META just after the close, the day will not be a boring one.
The small caps, represented by /RTY below, have had a very choppy week. The good news is that it seems to be banging out a series of lower highs with each attempt to push higher.
A New Normal on Trade?
In my last post on Thursday 24th July I was talking about the inflection point forming here on equities and the two important possible triggers this week. The first of those was the trade deal being negotiated with the EU and that seems to have been agreed over the weekend, at a general level of 15%. This follows a similar agreement with Japan and means that trade deals in that kind of area have been agreed now with most of the largest US trading partners except China, Canada and Mexico, currently at higher levels.
This could be establishing a new normal on trade so I wanted to take a moment to review where this may be leaving us.
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