Technical Analysis of Stock Trends

The Dow. Wave analysis…

Posted on Dec 08, 2009 by WHC Bassetti.

As illustrated here some interesting variations are taking place in the “surge — drift — flush” pattern which has been in effect since July.  In the present manifestation we count the surge as 12 days, and the drift as 15, although a higher high has been made during the drift.  Also the drift has certain broadening aspects. So far the flush has not appeared, so we wait confidently for Goldman to attack the market and furnish the flush we need to finish this pattern.

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Gold rush.

Posted on Dec 07, 2009 by WHC Bassetti.

A 30 minute chart of gold.  Today might be a reversal day, based on this chart and the daily chart.  But buying here is only for the most aggressive traders.  Without lifting our major hedges we are making very small buys in our CANE&M acct.  These will be tightly stopped.

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Blow off climax in the metals…

Posted on Dec 05, 2009 by WHC Bassetti.

The air pocket today in the metals is not caused by news or fundamentals.  It is totally technical.  Any time an issue goes parabolic it is only a matter of time till it falls over on its side.  We have six significant gaps here, the last being an exhaustion gap creating an island reversal.

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FXE. GLD. Broken rules, broken trades

Posted on Dec 04, 2009 by WHC Bassetti.

We are hedging our silver and gold trades with 2x ETFs, GLL (gold) and  ZSL (silver) and taking handsome profits in PGM, platinum.

Yesterday we broke a rule to exit the FXE short euro trade, not waiting for our stop to be hit.  Bad timing. Time to short the euro.

Oh well, no one is perfect, which was what we had begun to think of ourselves.

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FXE. Time to get off the short euro train.

Posted on Dec 03, 2009 by WHC Bassetti.

Never ones to beat a dead horse or kick a sleeping dog or throw stones at wasp nests (even in Boston) or store thrones in glass houses we’re ready to abandon the short euro trade.

When this market turns it will tear your head off.  But its time has not come yet.

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