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.
I cannot profess to tell others how to effectively manage their
accounts because I am a lowly participant who is learning all the time.
The truth is that 2019’s learning is much different than 2018’s learning
was, which was different than 2016, 2011, 2008/2009 and other pivotal
market phases. So I’d say that the biggest lesson to learn has been the
concept of marrying adaptability with discipline.
Cookie cutter advisers and brokers have it easier. They’re the majority of market professionals and they’ve learned and set in stone the way of allocating into markets; 60/40 stocks to bonds or some such variant. But for something more effective than ‘cookie cutter’, you need to keep learning, adapting and holding discipline as long as your signals remain valid.
Recently I stumbled upon some recent academic research in the form of this study which seeks to find out just how many day traders actually make money. I mean, let’s face it, there’s no shortage of come-ons on the Internet, in the form of videos………..
I sometimes talk about patience when it comes to positions, irrespective of whether they are long or short. I wanted to offer an example below in the form of Gulfport Energy (GPOR). What’s intriguing about this is the size and clarity of the topping pattern. Everything above that horizontal line is a squeaky-clean top (this image was as the stock looked months ago).
Isn’t it amazing what Central Bankers can do for markets. Case in point is this compressed view of the S&P 500 Index (SPX) in “area” format (monthly chart below). It’s virtually been on a tear since the bleeding from the financial crisis of 2008/09 was abruptly halted with their intervention and injection of monetary support, and it hasn’t had much of a correction since then, relatively speaking.
There is some after-hours excitement regarding Tesla, with the stock up about 8% or so, prompted by strong car delivery figures. I wanted to offer a couple of alternate viewpoints on the same chart.
The first, a bearish one, shows the absolute mountain of overhead supply. Even taking into account the rise after hours (which SlopeCharts has done for us below), all we’re doing is crawling back up to the failure point.
The crypto-loonies were absolutely giddy a week ago. Their king, Bitcoin, has soared \to $14,000. Just think, if you have only invested $100,000 in Bitcoin, you’d have over $70,000 by now! Anyway, easy come, easy go.
One way to play for both a gain or loss in a stock is to buy a straddle. This involves buying a call and a put at the same time wherein a certain degree of gain or loss in a stock will result in profit, and if there is no or small movement in the stock’s price, there is a small loss that will increase with time. In addition the straddle does better in rising volatility, such as prior to earnings, and worse in pre-existing high volatility which is dropping.
Another strategy that can take advantage of a potential directional opinion, is to obtain a straddle with a mix of stock and options. One can use synthetics to achieve this.