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.

Four Play

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It was another good day! However, being a cautious chap, I raised cash (again!) in anticipation of the CPI result in the morning. The mere fact that I took some profits and bumped cash up to 29% probably creates a metaphysical guarantee and the market will absolutely plunge in the morning. We shall see.

In the meanwhile, resistance held beautifully. On the /ES, we have rallied mightily since the opening bell on Sunday, and we smashed right into the red line that formerly represented supporting price levels. The overhead supply in this region is an important barrier.

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Weighing The Options For Equities

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I posted the SPXADP chart a few days ago, and since then it has punched above the 30 level on the chart. What does that mean? Well about 50% of the time that means that a short term high is very close, sometimes for a serious high, but more often just a retracement that would look for close to or at the -25 level on the chart. The rest of the time would be continuation, sometimes into a short term high not long after, but often just a move higher.

A double punch above the 30 level, as we may see that here, would strongly favor retracement or at least a period of consolidation in the weeks afterwards.

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