Technical Analysis of Stock Trends

Karnak gets restless. Starts betting on PALM, CPRX, other slow nags in claiming races…

Posted on Apr 12, 2010 by WHC Bassetti.

When Karnak can’t get to Vegas for awhile (largely chastened by the crash) he gets restless and starts looking for action.  He can almost always find it in the chart toppers — issues exploding on high volume.  Sometimes these things are total fizzles, sometimes obvious smoke and mirrors sometimes traps.  Maybe we should call them traps and craps.  Some of them might even turn into real investments.

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GLD, SLV — The long view

Posted on Apr 10, 2010 by WHC Bassetti.

SLV.  Notice anything different?

Of course not.

GLD.

What you are not noticing is that these are weekly charts.  The reason you don’t notice anything different is because price behavior is fractal.  Fractal means it is self similar at all scales.

Magee never heard of fractal.  It hadn’t been invented in his time.

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The Long Long view on Citibank

Posted on Apr 09, 2010 by WHC Bassetti.

We started buying C for our personal accounts back during the crash and the percentage profits are obscene, and in this case we are in favor of pornography.  Isn’t that what banks are anyway?  Or is it just their executives who are pornographers?  There we go talking dirty again, but when you are dealing with institutions which have the legal right to rape pillage and plunder what are you going to do?  Go with the flow.  Here’s what the flow says:  buy me.

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The long LONG view on BAC

Posted on Apr 07, 2010 by WHC Bassetti.

As is obvious Bank of America is in an 8 month long rectangle.  There is no guarantee that it will not be 12 months or more.  What is certain is that when it breaks out the move will be momentous.  Does anyone think BAC will break out on the downside?  As Damon Runyon said, when the horse has the right to rape pillage and plunder, that’s the way to bet.  Maybe it was Napoleon who said that.  They were both right.

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The long view –SPX, INDU

Posted on Apr 05, 2010 by WHC Bassetti.

In October we warned that the breaking of the trendline from March would have some consequences.  So far these consequences have been decidedly minor in nature.  Assuming of course you liked the 8% (m/l) downwave in February.

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