Archive for February, 2011

Wave Patterns — Dump-bump-dump, A, B, C downwaves

Posted on Feb 28, 2011 by .

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The first pattern, on the left, derives from observations by ourselves.  That is, in an uptrend a downwave, often violent and quick creates a  downwave (dump, or sell-off)   which is arrested by buyers looking for bargains causing the bump.  They are shortly punished  for buying a downwave by another dump.  The wavelet plays itself out […]

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The Peggy Lee Pattern…

Posted on Feb 26, 2011 by .

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Gray-bearded traders will remember (if they haven’t been overtaken Alzheimer’s) Peggy Lee and her disillusioned song, Is That All There Is?  Which sort of encapsulates our reaction to the 4 day wavelet we (perhaps) saw end Friday.  Is that it?  Where is the double dip, the purging of the wicked and the return of fire […]

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Buying opportunities? F, GM, C. Maybe not yet, but soon….

Posted on Feb 24, 2011 by .

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F, GM and C — among others look oversold.  Of course they can go from being oversold to being really really oversold, but we bought a little of GM and F (always loved cars), and readers should start thinking in terms of buying and adding on.  NOT TODAY.  Wait for prices to start up again […]

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Waves and whirlpools and rapids. INDU power bars.

Posted on Feb 23, 2011 by .

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This is not quite as extreme as it seems.  It’s an hourly chart, but it dramatizes the last two trading days.  Extreme power bars — daily moves of more than 1%.  Those look like trading signals to us.  Remember, trading signals, not investing or trend following signals.  Don’t come with crocodile tears if you change […]

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SLV. Silver breaks out. GLD lags behind

Posted on Feb 19, 2011 by .

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http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=0&dy=0&id=p20970412253&a=225464222 Silver broke the dump-bump-dump pattern as indicated at the short down trend line.  We cheated and bought the bottom based on the power bar (not recommended).  Now, for what it is worth silver has broken to a new high.  This is a clear buy signal.  We will be adding on to our position Monday.  […]

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