Technical Analysis of Stock Trends

Gold climax coming?

Posted on Nov 19, 2009 by WHC Bassetti.

This is a time to be especially alert.  The precious metals charts have gone parabolic and the angle of ascent is extreme.  We opine (opine is a little different from analyzing, but is close) that a climax is near.  The question is whether “they”  will be able to bring gold down by a significant amount.  The ETF funds now hold such holdings that an all out attack on gold can only take it down for a short period.

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Wave analysis of the Dow. Crucial stuff.

Posted on Nov 17, 2009 by WHC Bassetti.

Wave Analysis of the Dow from several dates — October and November

10/22/09

Since March 9 the Dow has made an orderly march upwards, if not an April upwards.  Wave studies are always interesting so it is interesting to observe what is happening here in the march, and also in this October.

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Buy signal in gold.

Posted on Nov 16, 2009 by WHC Bassetti.

This is a buy signal for aggressive traders in gold.

A little unsettling to think that we might be in a blow off  already, but gold is running and he who rides the tiger can’t get off for lunch.

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Buy signals in the indices — buy the Dow, buy the S&P

Posted on Nov 16, 2009 by WHC Bassetti.

Surprisingly when the Dow should be turning to drift it explodes.  This is a buy signal for aggressive traders.

We will be buying today, probably the DDM (leveraged Dow 2x).

And we will be posting shortly a letter doing an exhaustive analysis of the waves since March 6 which bears on our interpretation of this as a buy signal.  Stay tuned.

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UUP is Down (no brainer)

Posted on Nov 14, 2009 by WHC Bassetti.

In September we saw a sell signal in the dollar, as indicated on the chart.  A gap down.  Good practice, following the marked Basing Point would keep the trader short up to the present, in spite of the rally of early November.

This could have been done by short the UUP or by long the FXE:

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