Technical Analysis of Stock Trends

Dow –Technical picture becomes clear — as mud

Posted on Jan 29, 2009 by WHC Bassetti.

Actually that’s just your faithful correspondent making funny –what else can you do about the Dow?  Well, you could break down and cry, but then you might miss the breakout for the tears.  However there is some semse to made of the Dow pattern.  First of all, surprise, it is a sideways trend with a downward bias.  This is big news to our readers, we’re sure.  So what do you do in a sideways trend?  Hold on to your positions if you’re short the trend.  Make no new commitments (except as hedges, bottom fishing or buying lottery tickets, OR picking up stocks unjustly devalued on which you have expert or insider knowledge).  Or trade — as in buy the bottoms of the ranges and sell the tops.  Buy weakness, sell strength.

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Platinum — as in blondes and exhausts

Posted on Jan 27, 2009 by WHC Bassetti.

The platinum ETF just presented an interesting picture.  A breakout and pullback to the breakout line.  We bought some for our own portfolio.  In addition there was a clear buy signal on the gap today.  Obviously the stop is 5% under the nearby low.

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PHG. Kilroy (head-and-shoulders) bottom

Posted on Jan 27, 2009 by WHC Bassetti.

If you’re looking for  stocks to buy (and that is not a bad hedging strategy at present) here is a classical bottom in PHG (Phillips).   In addition there was a speculative buy signal today.  The more conservative  will wait for it to clear the fence line (neck line) but the pattern is really nearly perfect.

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No gold bugs we —but…

Posted on Jan 23, 2009 by WHC Bassetti.

We’ve been saying it since 2003.  Buy gold.  They can’t replace it with anything else.  And today there is a breakout signal.  The chart says buy more.  Who are we to fight with the chart?

Breakaway gap and run day on good volume.  Looks like a classic buy signal.

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C,C, see how the world twirls and how temptation tempts

Posted on Jan 22, 2009 by WHC Bassetti.

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