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.
I remain madly in love with my Dow Utilities short (by way of XLU). Looking at the $UTIL itself, below, I think there’s a decent chance we will traverse the green zone. My wild-eyed fantasy, given the superb formation of the diamond, is tinted in teal. I doubt the government would allow the market to behave in such an appropriate manner, but…………hope springs eternal!
Tesla has morphed from the world’s most exciting stock to something that more closely resembles a passbook savings account. Indeed, from June 8 2023 through January 8 2024, a period of seven months, the stock changed…….ZERO. I would like to suggest the analog below, which indicates that the price is going to continue to meander lower for weeks to come.
Shame on me. As the markets exploded yesterday for positively NO reason whatsoever (except Fed jawboning), I wanted to make my short positions even more aggressive near the close, but I chickened out. The /ES ripped almost 100 points higher (again, for NO reason), moving the market from Laughably Overvalued to Insanely Overvalued, and I didn’t do anything about it. It’s no shock that all the equity futures are down right now, but let’s none of us forget the (fake) CPI numbers coming out Thursday morning. That’s a big risk.
The market is still in BULL mode. It’s going to take a lot to change that. Below are four index charts, with the levels highlighted showing precisely what price levels must break to start to turn things truly to the bearish favor.
As valuable as it is to recognize patterns, it is just as valuable to recognize when price action exits a permissible zone. Sometimes this can be in the form of prices just “exiting stage left” from a formation, and other times the pattern will be complete and behaving itself and then suddenly do a 180-degree turn. Here are three examples of topping patterns that DID look good but defied expectations (and should have been aborted when the violation took place).
