Posted on Dec 20, 2014 by WHC Bassetti.
We have previously remarked on the progressively violent waves shaking the markets.
Posted on Dec 17, 2014 by WHC Bassetti.
Sailing before the wind, which we have been doing since Mar09, is easy. When you hit a hurricane in the Bermuda triangle you have to hitch up your pants and reef the sails. Today the market rewarded us with a 40 point day in the SPX. That’s big. We could just be in the eye of the storm of course and this day has yet to be confirmed. It also may be just the first step in a beta wave, which means the bottom will be tested again. (http://www.edwards-magee.com/ggu/alphabetazetawaves.pdf) But it was nice to stop the waterboarding.
Posted on Dec 13, 2014 by WHC Bassetti.
While the result is nothing rare, (an expected downwave to curb a 37+ day surge) the violence of its accomplishment was notable — sort of like a pefect storm at sea which sinks small boats at random. ”
Posted on Dec 09, 2014 by WHC Bassetti.
It is a sobering, but not unusual, fact that Standard & Poors has caclulated that only 10% of funds are above water. One wonders why investors pay incompetent managers for substandard performance. We think it is investor fear. They are acutely aware that the purpose of the market is to transfer their capital to Wall Street so they hide out in funds, or as it were in to the trap.
Posted on Dec 08, 2014 by WHC Bassetti.
Short was what our long trade in Oil was. Now it’s not only short in time, but short in direction. The prominent gap at the end of the chart we took as an exhaustion gap, but now it seems that it was a continuation gap and today’s action confirms that. Only experienced readers should fool with this market — and then only when the lower trendline is broken.