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.

King of the Midlines

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Let’s take a look at the biggest, oldest, and most important ETF on the planet: the SPY. In particular, there is an ascending channel on the SPY that goes back a full sixteen years (!!!) whose midline is, I believe, quite potent.

Over the course of 2024, the SPY has spent the majority of its time beneath the midline, with a couple of brief exceptions (in the ovals). The relationship of the SPY to the midline is more in the form of resistance, as I’ve emphasized with the arrows below.

Zoomed in this close, one cannot appreciate the longevity of the channel and its midline, but I believe these otherwise invisible levels have power.

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Four Play

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It was another good day! However, being a cautious chap, I raised cash (again!) in anticipation of the CPI result in the morning. The mere fact that I took some profits and bumped cash up to 29% probably creates a metaphysical guarantee and the market will absolutely plunge in the morning. We shall see.

In the meanwhile, resistance held beautifully. On the /ES, we have rallied mightily since the opening bell on Sunday, and we smashed right into the red line that formerly represented supporting price levels. The overhead supply in this region is an important barrier.

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