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.

The Week Ahead by BKudla

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Well if you looked at my post last week, every target on my charts were hit or exceeded. Wow! What I did not expect was the follow through.  I was convinced we'd get some profit taking.  My trade signals stocks had another great week, but I was more lightly invested than my signals, so I had an OK week, but quickly added back to my miner positions.

What I am trying to get my arms around is how buying MBS's in a already low interest rate environment is going to add any more juice.  I mean people who can refinance probably already have, right?

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DBC in Between a Rock and a Hard Place

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The Commodities ETF (DBC) began and ended today (Tuesday) at
the apex of and in between trendline resistance and support, as shown on the
Daily chart below…an important one to watch tomorrow and thereafter!

An indication of weakness would likely be confirmed by a failure of
AUD/USD to regain and hold above 1.05, along with further
weakness in China's Shanghai Index, as discussed in my posts of
August 17th and August 15th.

The Repo Man Cometh? (by Bob Kudla)

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The market rose on Friday, and started when Europe opened and continued until an hour after our market opened.  The reason given was the good employment report.  That reason is obviously a deception, as we lost hundreds of thousands of jobs.  So what could it be?  

My contention is the Fed started to add to reserves into the banking system Thursday/Friday (Repos). The last time this happened (Dec 2008) the miners and metals bottomed and then two months later the market rose.

So the market reacted positively to this, gold and miners showed strength, and as these repos continue, you will see a move to hard asset stocks and commodities, a move out of bonds, and then it will pressure non commodity assets as margin pressure will crush earnings.  But first we will make new highs in equities.

The Fed has no choice but to add reserves to the system or risk sovereign and banking collapses.  Reserves have been falling for a year, and the only reason the market is flat and not down is the volatility crush and short squeezes that forces risk on.  Both are done, volatility at lows and short interest down considerably. Jawboning promises of liquidity is done, and we are at peak earnings and margins, so reserve building is the next step.  Plus they must give the banks more cash to leverage up to buy gov't debt and to support the market price and their profitability.

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Now What?…………………Evil Plan 73.0 (by BDI)

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Now-What-500x337

Well, my fellow Slope-a-Dopes, where to from here? The blizzard rages on, that much is clear/blurry. The whiteout will arrive as the storm's violent fury reaches peak strength. The only question that remains is will it bury us alive, or will we escape certain death by borrowing Ben's 300hp QE fuel injected turbocharged snow blower to dig our way out.  Will the global economy rapidly descend into a deep freeze sending all financial thermometers to sub zero Centigrade, or will the coming coordinated round of massive global Central Bank snow blowing thaw all risk assets back up to Fahrenheit 451?  

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