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.

Homebuilders ETF Poised to Make a New All-Time High

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The Homebuilders ETF (XHB) is poised to make a new all-time high as it faces its peak set just before the 2007/08 financial crisis struck, as shown on the monthly chart below.

There are two interesting things I notice on this chart. The volume moving average has been steadily declining since September of 2013 as the momentum indicator is nearing its record peak set in May of 2013…hinting of potential profit-taking at current overheated levels.

So, whether, or not, we are about to see a rollover anytime soon should be revealed in coming days/weeks. Keep an eye on volumes and momentum, for possible clues.  Furthermore, as the Fed considers 3 to 4 interest rate hikes this year, no doubt mortgage rates would rise, as well, negatively impacting this sector.

The S&P 500 Index (SPX) is shown in the background as the blue area. If the XHB rolls over, it may also bring the SPX with it, but, as I described in yesterday’s post, keep an eye on HYG, as well. (more…)

Down the Drain

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My broad disposition these days is (a) bearish bonds (b) bullish precious metals (c) WTF on equities. I will say, however, there are select equity sectors that I think are still able to (gasp) descend. One of them is real estate. The ETF below illustrates this nicely; it is the triple-bullish fund based on real estate, and as you can see, it’s in a terrific topping pattern. It did a fantastic job filing its gap, and now I think it’s going to be descend-a-palooza.

drn