Technical Analysis of Stock Trends

Taking gas.

Posted on Jun 17, 2010 by WHC Bassetti.

Talk about Lucy and Charlie Brown and the football.  We have been burned several times in UNG gas.  Once more up to the breech good friends.

Looks like it finally broke out of a base and is a buy.

The stop is 2% under the low of last week.

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A buy signal in the Dow.

Posted on Jun 16, 2010 by WHC Bassetti.

Yesterday prices powered across the signal line in the dumpity-bumb-dump pattern (or whatever it is we call it).  This does not guarantee the resumption of the uptrend, but it is the way to bet for moderately aggressive traders and investors, as Napoleon said about Kenyatta and Runyon said about the heavy battalions — or was it ….?

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Tipping point tiptoes along razor’s edge…

Posted on Jun 14, 2010 by WHC Bassetti.

We have always had our eyes on that little known Nobel Prize category — the mixed metaphor prize.  We probably have the inside track on it, but you never know.  Our old college classmate and friend Fischer Black had the inside track and blew it by dying.  (Just a minute here.  We’re checking the old heart monitor…)  The Dow is racing along the razor’s edge here and is approaching a tipping point.

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More long term perspective on the Dow using short term data.

Posted on Jun 10, 2010 by WHC Bassetti.

Last Friday we analyzed an hourly chart of the Dow and remarked that it looked like a bottom forming.  Previously we had seen a possible Kilroy (or H&S) bottom.  Identifying formations as they form is an amusing pursuit but not always edifying and often mistaken.

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Dow black cloud. Silver lining. (Gold lining?)

Posted on Jun 07, 2010 by WHC Bassetti.

Actually, maybe it’s a gold lining.  While the Dow was deteriorating gold was contributing to account equity — as was silver.  Both could probably stand add-ons to the position.  You will remember our admonition about portfolio allocation:  increase commitments to profitable positions, decrease commitments to losing positions.

UUP, the dollar index also continued to contribute profits rather than sucking them away.  There is an ongoing lesson here in the value of diversity.

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