Technical Analysis of Stock Trends

chart experiment

Posted on Jul 20, 2010 by WHC Bassetti.

This is a chart experiment.

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Explaining the hedge trade SPXU and GLD

Posted on May 01, 2010 by WHC Bassetti.

Friday we put on a partial hedge as an inept response to the present market.  We’ll probably get egg on our face and be proven impatient again.  But here is why.  As you see from the Indu chart here there is a broken short term trend line.  Now, in all likelihood this is the beginning of a sideways pattern and the thing for long term traders is just to sit and grin and bear it.  Always itchy we looked at 12 ETFs tha we follow on a regular basis and found not one buyable at this time and all of them with broken short term trendlines.  The nearest to buying was the IWM, the Russell 2000, and we wouldn’t even buy it at this point.  (We should have bought it long ago.)

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PALM ing the EURO. Waving the Dow.

Posted on Apr 29, 2010 by WHC Bassetti.

PALM.  A shell game?

Still down.  System wins again.

Still up.  System wins again.

As we pointed out, PALM was a shell game.  The takeover price is a disappointment if you bought it after the signals.

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It couldn’t be better…Dow, C, BAC….ETC

Posted on Apr 15, 2010 by WHC Bassetti.

There is a famous story about J.P. Morgan (man, not bank) who went down to Pittsburgh to look at  his steel investments.  After touring the mills he asked the General Manager to sum up the situation.  Said GM, Couldn’t be better.  J.P. went back to his hotel and wrote a telegram to his broker in NY. “Sell all my steel.”

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Dow Downwave.

Posted on Mar 20, 2010 by WHC Bassetti.

As we were saying in our last letter, time for a downwave.  but what is it about this chart that draws the eye?

The volume is climactic.  Like an exclamation point.  That’s it folks!!.

Smart (and impatient and restless) technicians and traders have been talking for a week or so about selling new highs, and they did so Friday.  That and profit taking after 8 days up (an almost certain play for a downside bet) combined to produce the volume bar.

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