Technical Analysis of Stock Trends

Dump, bump, run — BAC C EEB NYC SLV ETCETC

Posted on Feb 19, 2010 by WHC Bassetti.

We have previously pointed out this pattern, which occurs on “corrective” downwaves of short duration.  The sharp sell off starting a downwave, the rally within the plunge, continued price deteoration.  This pattern allows the drawing of a tight downtrend line.  When broken by a power bar or a stong gap this furnishes a buy signal.  As to whether this buy signal will initiate a real trend is not known until the top of the “bump” wave is taken out, and then the top of the “dump” wave is taken out.

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Head faked in the euro…

Posted on Feb 18, 2010 by WHC Bassetti.

Six days ago we thought we saw the euro (FXE) turn.  Now we’re selling our position.  Why Prof, Why?  Oh, we don’t know.  Just don’t like it — just kidding.  There is an analysis.  The gap day six days ago turned into a spinning top (don’t worry about the term, just look at the picture) instead of a power bar.  Then that surge up was canceled by the next three days.  Ah, but a sign of hope the 5th day — what looked like a power bar.  Then that was canceled by yesterday and today.  We were willing to stick with it till it broke the low, but now we think you’re either short or out.  Systems wise short is still the indicated trade. For our personal accounts we’re sideways.

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DJP. Dump and pump and gap…

Posted on Feb 16, 2010 by WHC Bassetti.

Well, like Vancouver you have to haul snow so people can endanger themselves sliding downhill on boards (no skiiers we) and then you get a blizzard of buy signals.

DJP is flashing a buy signal.   Once upon a time it was at 72.

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FXE. If PIGS had wings…

Posted on Feb 16, 2010 by WHC Bassetti.

Here it is again — the pump, dump quick pass.  We (as marked on the chart) already were long the euro, and this looks like a confirmation — BUT a 2% stop under the low there.

At turns like this the market will throw you more curves and knuckle balls than the the Greeks have letters in their alphabet –  let’s see..alpha, beta…but we guess its delta and theta which are most important…

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Buy signals: GLD, DIA and….

Posted on Feb 16, 2010 by WHC Bassetti.

We call this pattern various names — not all of them appropriate for a family investment news letter — flush and surge, 1-2-3, tight downwave, bull fake out, pump and head fake …

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