Stay Buckled Up…More Volatility Ahead as July Closes!

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My last post on the SPX:VIX ratio refers. I mentioned that price on the Weekly ratio chart below may retest the 130.00 level and then rally. On Thursday of this week, price not only retested 130.00, but it blew right below to close around the 110.00 major support level.

Momentum has dropped below the zero level, indicating further weakness may be ahead.

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Thursday’s Interesting Charts

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It’s been literally six months since we’ve had a selloff like today’s, and it was delightful. Of course, Colonel Kilgore’s warning that “…someday, this war’s gonna end……” is echoing in my mind, since Yellen and her ilk always come along and screw things up just when it’s getting fun.

In any case, here are a few charts to allay my blogger’s guilt (and I must say, I am NOT feeling guilty about my Slope+ ideas in recent weeks, because Good God Almighty, there have been some gems in there………….it’s particularly gratifying, since a lot of annual renewals have been coming up in recent days!) (more…)

Good Lord

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Well, now that the market is beginning to fall to pieces, I’m in freakin’ Eastern Europe. Oh, well – - I’ve got fast Internet, an ungodly luxurious suite, and three laptops, so it’s not all pain and suffering. I’d just like to be even more into it than I am.

On the one hand, the market is very – - and I hate this word – oversold. One look at the ES shows you that we’ve rammed against a meaningful support line, and we could easily bounce to about 1942.50……… (more…)

The Inter-Market (by Faces In Cabs)

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I began visiting Slope of Hope back in 2007.  I opened my first trading account in 1999, began trading my own money, and started learning about fundamental investing by subscribing to IBD (Investor’s Business Daily) and the Motley Fool.  By 2002, I began learning about technical analysis through Stockcharts.  For years now, I have maintained a folder of 115 to 120 market charts that I review daily.  I am sharing some of them here.  Feel free to make your own charts from them.  I agree with Alexander Elder that to develop as a trader, you must make the tools that you use, your own.

For those not familiar with my trading style, I focus frequently on inter-market relationships to find arbitrage-like trading opportunities in the markets.  My charting has been greatly influenced by John Murphy.  I like to short-term trade (many times) the context created when inter-market forces line up for a directional move, as it helps me grab a higher percentage of the channel once a directional move emerges.  I grade my own trades upon the percentage that I take out of the channel.

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Nailed Genworth to a Tree

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My Slope+ folks (again – I think it was them – - my brain is tapioca) saw GNW as a suggested short last weekend, and it paid off yesterday – - but then again today. This chart is a little out of date, because now, it has even sliced through the Fibonacci fan level shown! I originally was showing this to illustrate how it had nailed the fan line, but the market is so weak, even that isn’t holding it up.

0731-gnw

Yet Another Occasional Winner

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Good God, this trading business is for the birds. There’s no such thing as a real vacation. Particularly when I’ve got a blog that I feel compelled to contribute to (although I’m insanely grateful to iggy and contributors for keeping things going).

Anyway, there are a ton of success stories lately with ideas offered here, but one I’ll toss out is Ocwen Financial, which I’ve been harping on endlessly both here and on Tastytrade. My options are zooming higher today. I’ve closed 25% of the position but am cheerfully holding on to the rest for potentially bigger profits.

0731-ocn

How to Build a Momo Stock Screen – (by RayW)

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Another first timer, thanks to RayW and I look forward to other Slopers submitting their thoughts, methodologies or any random tidbits they wish to share.  Send to iggyslopefest at gmail dot com.

How to Build a Momo Stock Screen (Works Up or Down)

It’s all about the percentages, not about prices.

http://tinyurl.com/maazafl

1. Using the FinViz.com screener first select Average Volume “Over 100K” per day.

This is to keep the bid/ask spreads as narrow as possible.

Greater volume means thinner B/A spreads, means a smaller fool’s premium paid to market maker for bid over ask.

Don’t just give away money on fat spreads of thinly traded stocks.

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