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.
Once again (so far at least), we got out usual schtick from the market: green prices all over the place for absolutely no good reason, and then a reversal. It’ll be nice if it actually manages to drive lower again. I miss those days.
While we are waiting, I wanted to point out again my fondness for Brazil as a short, by way of the symbol EWZ. Here’s the pattern with its Fibonacci retracements:
There was a time I thought pretty much all my readers were from the United States. Out of fear of offshore hacking, I blocked a ton of countries and quickly found out how many loyal readers I have in places I could never have imagined. It seems just about every landmass with civilization has Slopers on it. Indeed, looking at my Twitter followers (which is a pretty good proxy for the site in general), you can see how they are spread far and wide.
Chinese Communist dynasty emperor Xi knows they’ve blown the biggest bubble in the history of humankind. All measures being taken by Communists are to ensure the survival of the party when this bubble eventually pops. Dynastic succession in China usually involves the losers’ entrails being paraded around Tiananmen square (or other significant public gathering place), so this is about survival. Politics, economics and ideology are secondary.
The Communist dynasty knows that the bubble will pop and they will lose the mandate of heaven (economic prosperity). The only way they can stay in power is if the blame can be diverted. Trump is heaven’s gift to the Communist dynasty. EVERYTHING can be blamed on Trump. The Communist dynasty will play the nationalism card – having been attacked by Trump. The Chinese will rally around this. Trade was forced on China (Most Favored Nation was a punitive trade measure against China by the western powers) and now Trump is going back against trade treaties designed to humiliate China since the Boxer Rebellion. (more…)
I suspect the market is going to be in a state of “arrested development” today and tomorrow, since everyone and his brother is waiting for the stupid G20 to finish and some kind of announcement (or lack thereof) to be made.
In the meanwhile, let’s take a look at the emerging markets ETF, which has been steadfastly bearish all year long. I’ve circled in red where the respective crossunders took place with the exponential moving averages (50/100/200) and have tinted each “lower high”. This downtrend will remain intact as long as no “higher high” takes place.
My post of October 11 mentioned that China’s Shanghai Index broke below a major monthly swing low level of 2638.30 and that it could be headed for its next major support level at 2260, or lower.
Since then, price has fluctuated in both directions and has been attempting to stabilize, but remains just below that former swing low…a potential major inflection point.
Overlayed on all of the following three charts of the USD/CNY forex pair is the Shanghai Index (shown in pink). After price peaked in January of this year, it began an 1,140 point decline, in divergence with a rally in the USD/CNY. (more…)
