Just look at this embarrassment. You could put a child’s ruler on the screen and cover up every single pixel.
Phony as a $3 Bill
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.
How a Covered Strangle Can Greatly Enhance Your Return
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Several weeks ago, I wrote about short strangles and how they offer investors one of the highest-probability strategies on the market. If managed correctly, short strangles are an incredible strategy. But the capital required can be steep, so most investors shy away. Plus, the thought of being naked on both sides of a trade (call and put) can potentially lead to a few sleepless nights—that is, if managing risk is an afterthought.
(more…)Stock Market Risk Not Yet Realized
Stock market is at high risk, but…
The ‘but’ is the old saying “markets can remain [seemingly] irrational longer than you can remain solvent” if you fight a trend that is intact at any given point. Since March, 2020 that trend has been up.
Structurally Over-bullish
Below is a chart showing the 10 week exponential moving average of the Equity Put/Call ratio (CPCE) that we review periodically in NFTRH for a view of the structural over-bullish situation in stocks. I write structural because it has extended much longer than extremes in the CPCE have done at previous ‘bull killer’ danger points, after which risk was realized in the form of moderate to severe corrections.
The trend began logically enough at a ‘bear killer’ reading in the midst of max pandemic fear. We noted at the time that market participants were not just bearish, not just risk averse, but absolutely terrified. So the recipe is this: take 1 lump of terrified investors, add a heaping helping of the Fed’s money printing and voila, enjoy the taste of a slingshot rally that is very filling despite its inflationary odor.
(more…)Why I Bailed on Crypto
I’ve mentioned ceaselessly, both here and on the air, how “chart-friendly” crypto is. Well, that cuts both ways. The charts can tell me when they’re going up, and they can also suggest to me when they’re about to fall.
Slope is rather special in that we save a lot of intraday data, both for stocks and for crypto. Armed with this, I saw a series of intraday minute bar charts that were chilling to me. So I took my profits yesterday evening (with the exception of three positions, which I wound up closing Tuesday), thank you very much. I’ll get back in when the coast seems clear.
Greed Isn’t Virtual
I have sung the praises of Slope’s virtual trading before, and it isn’t because of stuff that feels good. Over the span of just a few days, I’ve lost about 60% of my account’s value, all because of just a tiny number of gargantuan, very aggressive trades. The good news is that the $300 million in losses are all pretend! But it just goes to show that when a person is just setting the world on fire, their ego can get the best of them, and they can shoot their own virtual foot off just like in real life.
