Technical Analysis of Stock Trends

Banksters are gangsters.

Posted on Jan 23, 2010 by WHC Bassetti.

http://www.marketwatch.com/story/fund-manager-sees-another-crash-in-home-prices-2010-01-19

I wanted to call attention to this article because I thought it had some fundamental facts which I think will affect the market at some point in the future.  But as Forester remarked the timing is difficult.

I think that what we have seen in foreclosures is the tip of the iceberg.  Over the next couple of years we are going to see 3,000,000 houses in trouble, if not on the market and foreclosed.

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F driving off cliff.

Posted on Jan 22, 2010 by WHC Bassetti.

Given the market context we don’t like F breaking the trendline like this so we are taking some profits and lightening our positions in F.  Profits are in the 275 to 300% range.  This does not alter our fundamental view that F will be worth inestimably more in the long run.  It’s just a trading tactic.

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Sell CRIS. EEB not looking good. Stay tuned. Stormy weather today.

Posted on Jan 22, 2010 by WHC Bassetti.

We will be taking some handsome profits in CRIS today.  Some of our students have called this kind of gap “the gap of death”.  And while today’s candlestick might hint at a one day reversal that’s not the way to bet on these extreme gaps.

It is difficult to imagine a long downtrend in EEB, but it is not difficult to imagine being out of it on this chart pattern.

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Busy, busy, busy…DJP, GLD, FAS, ETCETC

Posted on Jan 21, 2010 by WHC Bassetti.

Busy… (cf.  Vonnegut and Bokononists).  The brokers were glad to see us coming.  We took profits on a bunch of stuff, ranging from 10 to 20% in DJP, SSO, GLD, DIA, QQQQ.

We hedged part of our gold positions with GLL (short gold) and our index positions with SPXU.

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New downwave in the indices. (?)

Posted on Jan 21, 2010 by WHC Bassetti.

As may be seen here in the second chart a trend break is occurring in a 28 day uptrend.  In the first chart we can see that the trendline from March 6 is definitively breached.

There is a trendline from August which might offer some support:

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