Technical Analysis of Stock Trends

FXE. How to really trade the euro…

Posted on Feb 23, 2010 by WHC Bassetti.

In reality no one could quarrel with our management of the euro trade.  Except ourselves.  We have been spooked three times during this trend and tried to outguess the Basing Point system.  This comes from our dark past of being an FX gambler.

So we thought we should at least show readers how it should have been done, and how it should be done.

Continue Reading

Betwixt and between…INDU wave analysis

Posted on Feb 23, 2010 by WHC Bassetti.

We pointed out (the 11th or 12th Feb) that price was between the bump high and the low.  The bump high has now been taken out which is of course a bull positive.  Now price is again betwixt and between — between the July trendline as support and the August trendline as resistance. Also under the Nov 2007 trendline as resistance.  Nonetheless investors should still be long the indices as the Basing Point stop was not taken out.

Continue Reading

Dump, bump, run — BAC C EEB NYC SLV ETCETC

Posted on Feb 19, 2010 by WHC Bassetti.

We have previously pointed out this pattern, which occurs on “corrective” downwaves of short duration.  The sharp sell off starting a downwave, the rally within the plunge, continued price deteoration.  This pattern allows the drawing of a tight downtrend line.  When broken by a power bar or a stong gap this furnishes a buy signal.  As to whether this buy signal will initiate a real trend is not known until the top of the “bump” wave is taken out, and then the top of the “dump” wave is taken out.

Continue Reading

Head faked in the euro…

Posted on Feb 18, 2010 by WHC Bassetti.

Six days ago we thought we saw the euro (FXE) turn.  Now we’re selling our position.  Why Prof, Why?  Oh, we don’t know.  Just don’t like it — just kidding.  There is an analysis.  The gap day six days ago turned into a spinning top (don’t worry about the term, just look at the picture) instead of a power bar.  Then that surge up was canceled by the next three days.  Ah, but a sign of hope the 5th day — what looked like a power bar.  Then that was canceled by yesterday and today.  We were willing to stick with it till it broke the low, but now we think you’re either short or out.  Systems wise short is still the indicated trade. For our personal accounts we’re sideways.

Continue Reading

DJP. Dump and pump and gap…

Posted on Feb 16, 2010 by WHC Bassetti.

Well, like Vancouver you have to haul snow so people can endanger themselves sliding downhill on boards (no skiiers we) and then you get a blizzard of buy signals.

DJP is flashing a buy signal.   Once upon a time it was at 72.

Continue Reading