Posted on Aug 30, 2014 by WHC Bassetti.
Extremely sophisticated denizens of places other than San Francisco know that the most glamourous theatre event of the city is that screamingly funny long running joke, Beach Blanket Babylon. In our last letter we were embarrassed to find that we forgot the punchline to the joke. A colleague of ours recently remarked that the present markets were like a beach ball –you press it down in the water and it just bobs back up. Thus, Beach ball Babylon — We’re so tangled up in this failed exercise at humor that we’re just going to be embarrassed and hope no one will mention it again.
Posted on Aug 28, 2014 by WHC Bassetti.
(no link–go to stockcharts.com)
The PnF chart thinks we have a target of 2040. We think that is the lower end of targets. An analyst we very much respect, Sam Eisenstadt, formerly at Value Line (http://www.marketwatch.com/story/sp-500-will-rise-to-2100-by-september-2014-03-12) looks for 2100 in the SPX. As our readers know we don’t aim at targets, we aim to do what the chart says to do right now. And right now the chart says stay long.
Posted on Aug 22, 2014 by WHC Bassetti.
Some traders and investors are phobic about buying new highs, but best technical practice says just go ahead and do it. Hesitators point out the fact that breakouts are always sold and fall back and this is often true. But not always. Our practice has been to buy the breakout and then buy the pullback, scaling in. Today we increased our SPX position. We are almost back to the size we had before the correction. Above shows the raising of the Basing Point stop (1790.49), based on the new higher wave low at 5.
Posted on Aug 19, 2014 by WHC Bassetti.
It appears that the market learned our game and threw us a curveball– or maybe a knuckler. What looked at first like a B wave now is looking like the right side of a V. So we are buying back some of our leveraged SPX positions. Usually we would consider this aggressive, but it looks like prices are not going to test the bottom — at least not on this downwave. Furthermore it appears that market action is ignoring broken trendlines and top chatter and doom and gloom and the Kardashian wedding indicatior and all that stuff which was just for amusement anyway.