I’ll break with tradition and, gasp, offer up a long idea! FireEye (FEYE)
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.
Buying Opportunity?
Due to the California wildfires, and their associated liability, Pacific Gas & Electric has gotten absolutely torched, having lost a heart-stopping 70% of its value. This is a UTILITY company, people. If you’ll look at the left portion of the graph, it has suffered such shock events before, only to come roaring back. I’m not going to do it myself…………..angels fear to tread, and all that………….but you might consider if this is a “blood in the streets” type buying opportunity. As General Electric has proved, though, just because something looks cheap doesn’t make it a bargain.
Indexes and the Willliams %R
Even though I’ve given SlopeCharts a nice suite of technical indicators, I hardly ever use them. I often mention that I don’t really use indicators much, almost to the point of being strident about it.
I must say, however, that having gone through the cash indexes with the %R indicator today, I’m pretty impressed, and it just adds to the body of evidence that I think it’s bounce time (I sure hope so!) Keep in mind that you can move the horizontal line dividing the price from the technical indicator pane, allowing you to make the indicator taller, as I have done below. So here we are:
What I Bought
On Friday afternoon, I bought four ETFs. Yes, you read that right. I actually went long something. Some people joked that this meant we’d crash on Monday (hoo hoo hoo, ha ha ha), but I’m trying to balance out my 30 (smaller) short positions and also take advantage of what I think might be a decent bounce.
Below I provide a six-month chart and an all-data chart for all four of these ETFs. These longs are:
Regional Banks:
Bullish on CAT Despite Current Correction
About 11 months ago,I told our members to watch for a continued rally in Caterpillar Inc. (CAT). The stock had exploded to the upside after breaking above 6-7 year resistance at 112-117.
As it resided at just above 136, I wrote: “CAT still looks like it has unfinished biz on the upside into the 145-146 area next.”
I noted that while CAT certainly was overbought, “my work considers momentum to be in a ‘healthy overbought’ condition, rather than a divergent overbought condition. Usually a healthy overbought condition suggests that higher-highs will be forthcoming prior to the onset of a significant correction.”
CAT certainly complied with our analysis and then some, accelerating through our 145-146 target zone to a January 2018 high at 173.25.
Since that high, however, CAT has naturally pivoted to the downside into a correction that has pressed to a low so far at 129.43, or 25% beneath the January high. The weakness coincides with current realities and ongoing uncertainties about trade with China. (more…)
