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.
Scotty to Kirk: "Our defense shields are down after the last hit, Captain…and I don't know how long it will take to repair them…awaiting your orders, Sir…"
Kirk to Scotty: "Blah, blah, blah, blah, blah, blah, blah…yada, yada, yada!"
FAST FORWARD FROM THE 60's STAR TREK ERA TO FRIDAY'S GREEK CREDIT DEFAULT SWAP EVENT…and substitute "Kirk" with "Merkozy" and "Scotty" with "Draghi"…the words and message don't change…and, well, you get the picture.
Consumer Credit Data released on Wednesday shows, firstly, a correction in the prior month's release data down to 16.3B from 19.3B, and, secondly, a rise in the latest month's data to 17.8B, as shown on the graph below (note that the graph does not show the prior month's data correctly yet).
The levels of consumer debt accumulated during the past three months are higher than they were in 2007/08 just prior to the financial crisis…in fact, they're at their highest levels seen since January 2000…an interesting scenario considering that Personal Income has declined, as mentioned in my post of March 1st.
Today's gap-down "shock drop" in Foreign ETFs was accompanied by a big volatility spike in each one at levels seen in September/October 2011 during large declines in these markets, as shown on the Daily chartgrid below. Volatility is represented by the white histogram which is overlayed on price.
Data released today shows that Europe's Revised 2011 Fourth Quarter GDP declined into negative territory, as shown on the graph below…an area not visited since 2009. Today's figure confirms the prior Flash GDP number…will see if the Final GDP figure confirms (to be released in about 20 days).
Depicted on the Daily chartgrid below of the YM, ES, NQ & TF are Heikin Ashi candles.
After today's close, the only one that has begun to trend downward on this timeframe (according to the Heikin Ashi definition) is the TF (as there is no upper shadow on today's bearish red candle, which reflects strong selling). Based on this method, the TF has broken its Daily uptrend, while the other three e-mini futures indices are consolidating and show indecision (as there are both upper and lower shadows)…today's red candle will need to be confirmed tomorrow by a flat-top red candle to confirm that the uptrend has also been broken on the YM, ES & NQ.
Subsequent Daily flat-top candles will then need to be made on all of them to confirm continued strong selling pressure.
