My bond obsession continues, and with good reason. We’ve just had our latest breach. And remember, next week is a big FOMC announcement, so that should shake things up. The important fact is that we’re now beneath a support level that has been in place for months.
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.
Pilgrim’s Progress
Well, it was another one of those weekends where we were treated to all manner of market scares (“Trump is going to announce tariffs on $200 billion more of goods!”………..”China is going to walk away from trade talks!”………..”Oh noes!”) and yet, here we are just before the open on Monday morning, and the ES has collapsed all of 1/10th of a single percentage point. I can’t say I’m surprised.
One market that continues to behave As God Intended ™ is the bonds, whose pattern I’ve been following all year long. The head and shoulders pattern on it is glorious, and it seems to me that interest rates are simply going to continue stomping higher (which will do wonders for a planet buried in countless trillions of dollars in debt). The recent failure of this pattern (magenta tint) is, to my mind, the most significant market event to take place in years (the crypto revolution notwithstanding which, let’s face it, has enriched all of our lives beyond measure).
Everybody’s (Not) Talkin’
Once again, after a tiny, tiny dip in the market, everybody’s talking about a push higher. S&P 3000 is offered as a foregone conclusion. Indeed, even to this poor old bear, I can see an argument to be made for a bounce at current levels:
The 42 That Matters
The number “42” had resonance in the financial world a month ago when Elon “I think I’ll ruin one of the world’s greatest reputations” Musk declared that Tesla was going private at $420. Multiple lawsuits and one SEC investigation later, such chatter has of course vanished. Four Two Zero is moot.
For me, the far more important figure is ONE Four Two. Specifically, the support level of bonds (How’s that for a segue?) Break it, and the world is our oyster.
Bond Breakdown
There are two things I’d like you to check out:
- The video tutorials page. It’s super-gorgeous now, and the videos are new. I am very proud of it, and I am positive you will learn a lot about SlopeCharts. For those not using my chart platform for some reason, I encourage you to give it a try.
- The new guide to Memberships, which explains the various levels of membership and the features therein. I promise to only mention this page fifty thousand additional times during the year.
As for the markets, there obviously isn’t a heck of a lot to say on a holiday, but there was some GLOBEX trading to watch. I am fixated on bonds, as is always the case, and there’s an important prospective breakdown looming at the red line shown below. The big “event” this week is the jobs report before the market opens on Friday, so perhaps by the end of the week we will have busted this line.
