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.
As warned, the dollar held onto support and started to strengthen which helped weaken the markets today. The same thing could be said for the Euro, but instead of support, resistance helped weaken the markets(as mentioned by Tim)
VXX breaks resistance near channel support
A Sloper by the avatar name of phantomcapital sent me his view of the market's future. I really, really like this analog he put together, and he kindly gave me permission to share it with all of you. It lines up nicely with my own thinking.
As we all know, it's dangerous to get married to analogs, but if you follow the mantra that "it works until it stops working", you'll be better off. Thank you, phantomcapital, for your hard work on this and allowing me to let the group see your chart.
Color, Mania, and Hedging Gold
Below are some thoughts on hedging gold, but before that, a quick aside, prompted by a chapter I read today in The Slope of Hope Bathroom Reader. On p.28 ("Color and Mania in the Valley), Tim mentions the mobile app Color, the creators of which received an astonishing $41 million in venture financing, as an example of the recent bubble in tech. As it happens, one of my daily clicks is the iOS app tracker AppShopper.com, which provides hourly rankings of Apple iOS apps. (Editor's Note – thanks for the book mention, Dave!)
Prompted by my post about my worst trading day ever a year ago, one Slope of Hope reader wrote to me the email below. I found it thoughtful and helpful, and the writer gave his kind permission to publish it here. Thank you.
I enjoy reading your commentaries. More importantly, I admire your commercial success. To begin, expand, and ultimately sell a business reflects enormous skill and talent. And a willingness to take chances at every step.
I am a semi-retired Wall St. pro. With a 40 year history of retail broker, analyst, institutional desk manager, etc. I am most proud of the fact that I left the street financially and intellectually intact. And still earn my living today as a trader. For myself.
Having set the table, here is my observation: I read your post regarding last year being the worst day of your trading life. With follow on comment(s) about Bernanke this and that. All well and fine, except for one thing. Something I learned a long time ago: January 1980 to be precise. I had a client, a brilliant economist, writer, analyst. Who was long gold. Very long. For all the "right" reasons (yeah, you know: the weakening dollar, trade deficit, blah, blah). And when the market started to sell off, he did not budge. You see, he was long gold for all the "right" reasons. He had acted precisely as his strategy dictated.
Problem was, Gold did not care. It continued to go down, and my client was sold out (actually, he was taken away from me. In the old day's, you were not allowed to keep clients who were in margin trouble).
Anyway, know what I learned? It was my first – and best- lesson ever: When it comes to trading, there is no right or wrong. Only profit and loss. You want to maximize the former, and minimize the latter. Rest of the time, enjoy your family and friends. If you want to play at being right and wrong, become a contestant on a game show.
You are a very clever analyst, and a far cleverer (is that a word?) observer of market dynamics. I am not saying anything you don't instinctively understand. Merely commenting on what the market taught me. Repeatedly over many years, as with a 2 x 4 over the forehead. But that first lesson stood me in good graces with the trading god's.
Whatever is said this week, by whoever says it, the market will react. It always does. Our duty is to spot the opportunity, and profit from it. Not debate it.
I hope you accept this letter in the spirit it was written. I greatly admire what you have achieved. But I do have a few years head start over you in trading.
I keep getting the sense that the world is treating the Jobs departure as a funeral instead of a retirement, but let's face it, Steve Jobs is Apple, and it rightfully feels like a funeral. A Sloper, Mark St. Cyr, write me this morning, and he had posted a touching tribute to Mr. Jobs. Mark has given me permission to share it here.
Today many will wake to the news Mr. Jobs has resigned as CEO. He will most surely be granted another position to stay,and remain part of Apple® as he has asked. It appears his health must be getting the better of him. For many of us who’ve run companies large or small, or tried to start anything from scratch based solely on our vision of what we thought should be, and not accept the status quo regardless of the odds. It was Steve Jobs struggles, and triumphs that was for many of us what we thought about when we too were having our own dark hours.
This is a man who revolutionized everything we now take for granted, computers, music, movies, telephones, and to some degree business itself. But that’s not the important stuff for many. This is a man who at every stage where he could have kicked back and retired with mega bucks refused. He put everything on the line everyday, his money, his reputation, and at times I bet even more, and lost many times. However we’re talking about him today because he turned every loss into a turning point for even greater success. What an amazing story, period.
Although Apple® the company is a wonder of a success in so many ways (It also just became the largest market cap company in world dethroning Exxon Mobil!) it’s the passion, the vision, the determination of Steve Jobs that I personally hold in reverent respect.
Thank you Mr. Jobs.
