Technical Analysis of Stock Trends

Platinum! Platinum! Platinum in… California?

Posted on Oct 16, 2009 by WHC Bassetti.

While we have just finished knocking the long term prospects for OIL we might as well mention something that rust doth not corrupt nor moths eat.  Platinum.  PGM in ETFs.  We bought it in January and love to be lulled to sleep at night by its boring progress.  We actually should have been adding on and now is a time that the newcomer might want to get in with a minimal commitment.

Continue Reading

Gusher! Oil, Oil in….

Posted on Oct 16, 2009 by WHC Bassetti.

OIL.  As many readers have pointed out OIL has broken out of a triangle and we have a clear buy signal.  But frankly we think the oil rush is over.  The probability of oil returning to its former heights are slim and none.  This is now a trading market and the probable move here is six or seven points.  We might buy two units of it and sell one for a trade when that is achieved and keep the other as a trend trade.

Continue Reading

Buy! Buy! Buy! Well, enough of hype, but in fact there is a Dow buy signal today

Posted on Oct 14, 2009 by WHC Bassetti.

In two minutes traders drove the Dow 80 points through the previous high and  then above 10,000 (after this chart).  These are two very important points.  As we all know the market can crash tomorrow.  And if it does we will hedge or exit.  Today we buy.

Continue Reading

Congratulations! Congratulations to the Putnam Voyager Fund which outperformed 99% of its peers…

Posted on Oct 12, 2009 by WHC Bassetti.

The WSJ today has a full page ad for the Putnam Voyager Fund in which they congratulate themselves on outperforming 99% of their peers., and as you can see from the chart they have been on a performance tear.

But you know us.  Ever like Toto who wants to see what is happening with the wizard behind the curtain we nipped at their heels and guess what we saw.

Continue Reading

Short the bonds.

Posted on Oct 10, 2009 by WHC Bassetti.

A pretty obvious signal to buy TBT the bond shorting ETF.  PST will work too but the chart is not as striking as TBT where a trend line is broken by a power bar on arresting volume.

All the bond ETFs look salable with gaps and heavy power bars down.  Here the SHY with a bull trap top and a signal gap down.

Continue Reading