Looks like a terribly easy short to me………
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.
Dare I Say It……
……..but the Chinese market looks like a good risk/reward ratio right about here.
Corrections Close to Completion (by cantabnomad)
To continue with the theme of foreign (to US residents) markets, here is my take on the Italian MIB index. Italy is eurozone's third largest economy.
BOTTOM LINE: Corrections higher in risk and related assets are likely very close to completion. While major US indices advanced about 1.5% higher than expected, EU indices, notably EURO area indices are moving along the expected lines. Internal structures of these indices suggest that the next leg of the decline is imminent.
Below is an hourly chart of the Italian MIB index (Italy is the world's seventh largest economy – just below the UK). The MIB has been much weaker than most EURO area indices, and currently retraced just about 50% of its 11.3% decline. The internal structure of the decline and subsequent rally appears to conform very well to wave guidelines, with the correction finishing (?) with a clear impulse higher (15 minute chart below the hourly chart).
This is a very short-term, 15 minute chart of the Italian MIB.
I hope you find this useful, and have a good day. – – - Aidyn Kussainov
European Indices (by cantabnomad)
Good time of the day, Slopers.
It is perhaps a testament to importance of the US to global markets – absolute majority of financial blogs out there focus on major US indices, such as SP500, Nasdaq, DJI and Russell.
As I am based in Europe, I mostly trade EU indices, which I also often find clearer from a charting perspective. Perhaps that is because many fewer people trade those. Perhaps also my posts on EU indices might be useful to you from a cross-asset perspective.
I bring two charts today, both of which look a lot more bearish than US majors, in my opinion.
This is an hourly chart of EuroSTOXX50 – an index composed of 50 largest stocks in the Euro area (which in terms of GDP is only 5% smaller than the USA). The EuroSTOXX fell through their early October low, and so far retraced about 62% of their 9.3% decline from the high (SP fell a much more modest 6.6%, high to low).
This is an hourly chart of the German DAX (fourth largest economy on Earth). This is one of the weakest Euro area indices, which so far retraced less than 62% of its 9.75% decline.
It is quite unlikely that US markets go much higher without us Europeans. As European markets are much weaker, and do not look like they could challenge the highs any time soon, I'd say chances are high that the second leg of the decline begun on 20 October is about to begin.
Thank you and have a great week. – - Aidyn Kussainov
Shorting EEM (Stop=39.55)
