Technical Analysis of Stock Trends

A better link

Posted on Jun 28, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$SPX&p=W&yr=2&mn=0&dy=0&id=p06999154475&a=203091990

http://stockcharts.com/h-sc/ui?s=$SPX&p=W&yr=2&mn=0&dy=0&id=p06999154475&a=203091990

Here is a better link for the chart we posted yesterday.  We’re in the process of figuring out why that chart displays like that.

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Chart hints in the Dow and the S&P

Posted on Jun 27, 2010 by WHC Bassetti.

Here is a chart posted by one of our bright graduate students at Golden Gate University.  It is a weekly chart of the S&P.  Readers will remember that weekly bars are used for very long term trading systems, and we used a weekly system in our study of the Dow (Sacred Chckens, the Holy Grail and Dow Theory).  The student is speculating and is aware of it.  He has correctly identified a candidate Basing Point  (short) in the SPX.  While it is not impossible that the formation is a bear flag (and time will tell) we still prefer to look at it as a bottom of the down wave.  It may also be a rally or upwave against the downwave started April 26.  The next chart down may give us a hint as to the next development.

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End run? Fake out? More of the same….

Posted on Jun 24, 2010 by WHC Bassetti.

Two things have occurred here in the hourly chart.  The little uptrend line was broken and it appears that price has returned to the congestion pattern.  Meaning that the supposed buy signal is canceled.  It appears at this moment to have been an end run, or a false breakout.  Given the conditions during this pattern this is no surprise.  It is patterns like this which drive traders crazy.

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Dumpity, bumpity, dumptity…

Posted on Jun 22, 2010 by WHC Bassetti.

These are times of high anxiety for investors who lack a compass and a barometer.  If you have no instruments how do you know what to do in a storm — which is what we are in at the moment.

On the other hand if you have a method for analyzing the market which sets out clear signposts you can watch the snakes bite each other to death with some (if not a lot) equanimity.

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Fool’s gold. Chinese stocks.

Posted on Jun 21, 2010 by WHC Bassetti.

Charts like this inflict us with incredible ennui.  It looks like a breakout, with a gap and volume and the breakout bar is a black candle that might be interpreted as a reversal day.  Spare us the grief.  But, like Charlies Brown and the football we say, OK do it to us and we buy it.  We do this because we can always sell it if it turns out to be fool’s gold.  Which it may.  We really don’t think that a major breakout is occurring, but you have to have some consistency in your trading, and that requires us to take the signal.

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