Posted on Jan 09, 2017 by WHC Bassetti.
The most natural thing in the world is for the market to balk at important symbolic numbers. Thus the major indices are balking at the present major step–Dow 20000, and a commensurate number in the S&P (more or less 2300 + or -). The S&P has been even more balky because of its inclusion of several sectors the Dow ignores — health care, etc. We added on a very small position, while recognizing it as a rank speculation. More rational investors will not add on or go all in until the upper trendline is violated.
Posted on Dec 29, 2016 by WHC Bassetti.
Evaluating the volume here it is clear something is up–probably accumulation. Nonetheless the wave which started Nov7 is now consolidating (or, less likely, reversing). The trendline is well broken and today we saw the full effect of that. The trendline is running through a rectangle as defined by the two horizontal lines. This shouldn’t be a big deal — possible implications are about 30 points, and there is support at the 2210-2190 zone. We are not bothering to hedge, and we are not doing any buying until the rectangle is throughly overcome.
Posted on Dec 16, 2016 by WHC Bassetti.
The PnF chart of the INDU pretty much expresses the market situation. A long period of sideways chop has given way to a breakout, and the system looks for a target of 24099. The technical base is certainly there, and if the Congress changes its recalcitrance to cooperation the economic circumstances will be there. They could have done this 6 years ago but then that illegitimate president in the White House might have got some of the credit. No No Nanette.
Posted on Dec 07, 2016 by WHC Bassetti.
And with no need for a nose job. Today’s candle is about as plain a buy signal as you could want. Incidentally there is supposed to be a seasonal in December with good little investors being rewarded by Santa Claus. Bah! Humbug! Information like this should be ignored: the chart tells you all you need to know. But the stage is set for a strong and continuing rally, as shown in the PnF chart below.