Another sell signal…
Posted on Jul 02, 2009 by WHC Bassetti.
Today’s action broke the closing lows of 26 days, and constitutes a sell signal for us. Of course we already sold some time ago but for multi unit traders this would be an add on signal. The top chart shows the ominous combination of both the long term trend line and the 200 day moving average acting as double resistance. We would review all our longs and analyze the likely effect of an overdue downwave here. And we would certainly not be without well analyzed stops.
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Pruning for the downwave…
Posted on Jul 02, 2009 by WHC Bassetti.
We sold AIG, scaled out of FRE and FNM. Profits ranged from 5 to 30%. Our Ford profits are in the 300%+ range and our BAC profits are also exorbitant. We are still long platinum with about 25 or 30% paper profits. We’re glad to be out of gold and silver. But we’ll be back in. Stay tuned.
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More lottery tickets… of a rare nature, these
Posted on Jul 02, 2009 by WHC Bassetti.
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A most interesting line…
Posted on Jun 29, 2009 by WHC Bassetti.
The horizontal trend line (we often call them signal lines) under the present formation (878.92 on our chart — ignore the yellow box with the 768.82 in it) is right on the top of Basing Points we identified months ago.
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Who’s afraid of the big bad 200 day moving average?
Posted on Jun 25, 2009 by WHC Bassetti.
The simplest, and simple-mindedest, moving average system is to buy when price crosses above the moving average and sell when price falls below the moving average. Of course in mule, or sideways, markets you get whipped like a stubborn mule — or the mule of the Marquis de Sade.
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Noted technical analyst WHC Bassetti has over 40 years' experience in the financial markets and is Malcom S.M. Watts III Adjunct Professor of Finance and Economics at Golden Gate University. He is editor of the Ninth Edition of Technical Analysis of Stock Trends, widely considered to be one of the true classics of market analysis.
