Technical Analysis of Stock Trends

Disregard this letter also.

Posted on Jan 22, 2012 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p40392582161&a=254727527

You can use this link to see a larger chart.

We haven’t stopped detesting forecasting, but there  is a question in the waves here that should at least be mentioned.  Our last comment on potential for this trend, using the Wyckoff measuring method,  forecast a wave high of 1860.    While this seems fanciful to us, there is another method we have talked about before — the rule of seven.

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A Dow buy signal.

Posted on Jan 19, 2012 by WHC Bassetti.

It is impossible to interpret yesterday’s action as anything but a buy signal in the Dow.  Prices went to a new recent high on a power bar — and — the downtrend line from March was broken on the same bar.  We are buying for our personal account.  Taking out the March highs will be very bullish.

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Disregard this letter.

Posted on Jan 16, 2012 by WHC Bassetti.

Occasionally there are times when we are required to –like it or not — act like a technical analyst.  This is one of those times, so we warn our readers so they can be prepared to take the letter with a large grain of salt.

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Psst. Hey Meester want to see some dirty stocks?

Posted on Jan 07, 2012 by WHC Bassetti.

Is there something shameful about talking about bank stocks?  Or do you just get enraged when contemplating the obscenities of sub-prime loans, manipulation of minorities into unfavorable loan conditions, or robo signers?  Or do you just get high blood pressure contemplating what they did to the country and the economy?  Besides that we’re still personally mad at the sharpsters in Charlotte who outsmarted Bank of America executives and moved our bank to Hicksville.  (No offense meant to Charlotte.) (We moved our important accounts to Wells-Fargo the next day.)  Then they compounded the offense by buying Countrywide and then Merrill Lynch and who knows what else in an orgy of hubris and narcissism.  Excuse us while we take our high blood pressure pill –as we were saying, feelthy stocks?

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Mind your Es and Qs….

Posted on Jan 05, 2012 by WHC Bassetti.

Impossible to ignore the Qs. Burst out of a big triangle.  Big sideways base. We are buying some.

Also impossible to ignore the downtrend in the euro, which we have remarked on numerous times.  Now another downgap. We are shorting some, using the EUO ETF.  Stops shortly.  Have to rush down to the pit.

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