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.

An Extra Exit

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Welcome to a new week, and that one awkward time of the year when we’ve just emerged from weeks of on-again, off-again holidays only to face in just a matter of days ANOTHER freakin’ holiday. Groan. Ah, well. Let’s focus on what’s before us.

The big news today, of course, is that on top of overcharging the government for its “defense” contracts, Boeing has found itself in the business of selling planes whose parts come flying off during midflight. In a rational world, this would crater the stock 90%, it’s down just about 8% this morning, since they figure that Yellen will introduce the Boeing Support Finance Program or some such thing. In any case, a drop is a drop, so I’ll take it.

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Pairs Trading (by Garcia)

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Welcome to pairs trading, the strategy that’s less about following the market drum beat and more about conducting your band. Here, you take a long position in one stock, and its partner in crime gets the short straw. It’s like having twins with opposite personalities – you love them equally but for different reasons.

Picking Your Dynamic Duo: It’s about finding two stocks that mirror each other’s moves, usually from the same industry. They’re like dance partners who’ve been stepping on each other’s toes for years. When they suddenly forget their dance steps (i.e., their prices diverge), that’s your cue.

The Art of the Spread: In the world of pairs trading, ‘spread’ isn’t something you find in a bakery. It’s the gap between your two stocks. When this gap gets unusually wide, it’s not just interesting – it’s potentially profitable. You buy the laggard and short the leader, hoping they’ll snap back into their usual rhythm.

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Index Reflections

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I come to you from the Delta Sky Club with a head hanging low, burdened by the guilt of a lack of content. I have a lengthy plane flight ahead where I can stockpile up some posts. Let’s just take a stroll through eight major index charts while I share a few words about each. It’s a mixed bag.

We begin with the NASDAQ Composite, which is approaching important support. This lovely bit of weakness could terminate tomorrow with a huge rally for all I know (using the jobs report as an excuse). It’s also possible that we slice through the supporting line, invalidating the breakout. Take a guess what I’m hoping for.

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