Technical Analysis of Stock Trends

David vs. Goliath. CanE&M vs. Cangx.

Posted on Oct 08, 2009 by WHC Bassetti.

We couldn’t resist the illustration.  We used to see this exact illustration in Sunday School.  David taking out Goliath with a sling.

An apt metaphor for our contest with IBD”s CANGX.

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Sell the Dow. Buy the S&P.

Posted on Oct 08, 2009 by WHC Bassetti.

No. No. No.  That’s not what we mean at all, if you know what we mean.  But oftimes the meaning of meaning can be obscure, as Wittgenstein noted.

What we mean is this.  After a forty year love affair with the Dow we’re moving on to faster company.  Ta-da.  The S&P 500.

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CANGX can’t. CANE&M can.

Posted on Oct 05, 2009 by WHC Bassetti.

Mark this chart well.  It is the zero kilometer (as they say Tour de France) in our race with CANGX, using our horse, CANE&M (our account where we put our token trades competing with Attila the Hun’s newspaper).

Today we bought the QLD and the FAS.  Easy trades.  No brainers.  The risk is absolutely clear.

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Wave forms in the Dow.

Posted on Sep 30, 2009 by WHC Bassetti.

Given the volatility of the market over the last year it is surprising that downwaves since March are so mild.  The June downwave when the entire punditocracy jumped up and down expecting the inevitable test of the March low was actually constructive.  The entire punditocracy is jumping up and down now cheering for a test of the March low.

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Buy the Dow –the analysis

Posted on Sep 28, 2009 by WHC Bassetti.

Let us now discuss some of the most fundamental principles of technical analysis.  Trendlines.  Trendlines could well be called signal lines, and sometimes we do.  The breaking of tendlines is always significant.  The longer the trendline, the more important the signal.  Buying on the break of trendline A here is obviously extremely aggressive — and the most profitable, but as we know there is a high degree of risk that the trend will not continue.

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