Technical Analysis of Stock Trends

Busier, busier…put gold hedge back on

Posted on Dec 17, 2009 by WHC Bassetti.

30 minute chart of gold.  We lifted the gold hedge yesterday based on this chart.  We’re putting the hedge back on today based on this chart.  We keep telling readers to invest not trade.  See what a hassle it is?  We didn’t re-hedge silver and platinum.  Whether or not the current pattern forming in the metals is a flag or not remains to be seen.

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Busy, busy, busy…bought Platinum, lifted gold, silver hedges for personal accounts

Posted on Dec 16, 2009 by WHC Bassetti.

There is every possibility that this could be a flag in PGM which could augur another leg down in platinum and the metals.  But, ever adventurous we lifted our gold and silver hedges and bought platinum.

Busy, busy, busy, as Kurt Vonnegut’s bokononists would say.

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Buy F.

Posted on Dec 16, 2009 by WHC Bassetti.

These are buy signals in Ford.  We know that fundamental analysts have said that Ford is inured in such debt and fundamental balance sheet garbage that it can’t survive.  Why is it then that the market keeps saying buy Ford?  Are all those traders stupid?  Or is that fundamental analyst stupid?

We would be stupid if we didn’t put a stop on this increase in commitment.

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Change of pattern in the Dow

Posted on Dec 16, 2009 by WHC Bassetti.

Since July the Industrials have exhibited the wave pattern we have called “surge, drift and flush”.  This has been very descriptive, and useful.

Now the pattern appears to have changed.  The present pattern developing after the last surge has passed beyond drift into an uncertainty pattern perhaps better described as a rectangle.  Except that it is very unruly with some broadening aspects.  And daily range has shrunk noticeably.  This shrinkage, or coiling volatility will soon beget explosive volatility.

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Buy signals in FRE, FNM

Posted on Dec 15, 2009 by WHC Bassetti.

Strange, but true.  Just when we were about to give up or throw up, FNM and FRE generated buy signals.  Our patience was not technically generated but based in the economic analysis — you can’t sacrifice these lambs even though it’s Eid al-Adha.

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