Technical Analysis of Stock Trends

Playing with fire around the Xmas tree.

Posted on Dec 21, 2008 by WHC Bassetti.

Occasionally we feel like busting out of our three piece grey flannel suit and doing something wild.  Sometimes we catch the tree on fire.  Sometimes we burn the house down.  For our Christmas folly this year we looked at the chart in the bonds and said, hmm, that looks like the Case-Shiller chart of real estate and the tulip bulb chart, which of course it does look like.  

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Strategies for good little investors from Santa Guru

Posted on Dec 21, 2008 by WHC Bassetti.

Strategies, December 2008—January2009

December 21, 2008

We have laughed at the foolishness of analysts who are rushing to make forecasts as to the likely next phase of the market.  Now it is time to put our own faces into the van Allen belt of flying eggs – but in an entirely different way. (Please don’t laugh.  We take this seriously.) 

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Dow coils. Snake market. Getting ready to bite Santa Claus

Posted on Dec 20, 2008 by WHC Bassetti.

Mark Hulbert has recently noted that his best performing newsletters (he doesn’t track this one) are tending bullish, while some good performers are forecasting more downward action.  Which of these forecasts is correct?  Which of these forecasts is wise?  The answer is neither and neither.  It never ceases to amaze us that analysts will endanger their proboscis to flying eggs.  Not that we haven’t had egg on our face frequently, but as the Spanish say, son casos completemente distinctos.  The truth is this:  the market is at the moment sideways and coiling.  The range is tightening and the near term direction is most likely more sideways.  The shortening of range may well result in some fireworks next week.  Next week is amateur week.  The real traders are in the Hamptons, Maine and Aspen for the holidays, so are probably unavailable to deal with any irrational exhuberance either way, up or down.  For most of our readers– investors and trend followers — these largely meaningless forecasts and speculations will be of only passing interest.  Speaking of speculation, which we will in just a New York Minute, we shorted the bonds which we will explain in a later posting.  We will also do some speculating shortly on investment strategies.  For this moment here is the Indu 

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OOPs — so long UUP

Posted on Dec 16, 2008 by WHC Bassetti.

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Naked mud wrestling in Senate. Naked knife fighting in market.

Posted on Dec 13, 2008 by WHC Bassetti.

Of course we’re capitalists.  Of course we’re not deaf dumb and blind capitalists.  Of course we’re not pigs to the trough capitalists, like Phil Gramm — and the companies who evaded all common sense regulation and almost burned down the house.  But the sight of the U.S. Senate arguing about hourly rates of Detroit workers while the Titanic is taking on water inspired us with such disgust and fear and loathing that we wanted to take a scourge and clean out the law making temple.  

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