Technical Analysis of Stock Trends

Phony? or FONR?

Posted on May 22, 2009 by WHC Bassetti.

Gaps like this always get our attention.  As always we know less than nothing about the fundamentals of FONR but you might want to take a look at it.

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Commodities come calling

Posted on May 03, 2009 by WHC Bassetti.

Looks like buy signals in MOO and DBA.  Has to happen.

The 200 day moving average bears watching here.  Better watching it than watching bears.

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Portents of doom?

Posted on Apr 26, 2009 by WHC Bassetti.

It is difficult to look at the long term chart of the S&P and not feel a sense of profound uneasiness.  Months ago — before the fall — we posted in one of our chat groups a joke that was taken seriously.  We said that measuring from the top of this double top to the neckline that an S&P of -4 was predicted.  An upwave like this demands correcting, and considering the wretched excess of the upwave you might expect the downwave from hell.  A tsunami begets a tsunami.  Fortunately there is an alternative.  Sidewaves can substitute for downwave.  This scenario would imply a sideways market for quite some time.  The good news is that the size of the sideways would be sufficient for the clever and quick and readers of this letter  (who are by definition clever and quick) to cash in.  

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If you’re going to predict, predict often. M. Friedman.

Posted on Apr 02, 2009 by WHC Bassetti.

Also, don’t stand on the railroad tracks in front of express trains.  A couple of days ago we thought the rally might be ending (note:  thought, not analyzed).  Now we analyze that this wave could easily reach one or both of the downsloping trendlines.  These would be analytical points for the wave to exhaust itself.  When this wave started we remarked that hedging and scaling out were valid tactics.  Profit protection is now in order for bears.  Nonetheless you might pay attention to the economic realities, the most important of which is

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EEB, FXE, DIA, XLF, INP, IWM, IAI, FXI, MOO, RTH, DBA, QQQQ, GLD, XHB, USO

Posted on Jan 19, 2009 by WHC Bassetti.

For the general investor this list of ETFs is probably sufficient to to occupy 90% of his (her?) (hizzer?) portfolio.  We just slogged through the entire list and imagine the number of charts we saw that were buyable.  Nada.  Zip.  Nyet.  Ninguem.  A slight exaggeration.  As everybody knows we’re long gold, but woldn’t buy anymore right now.  We commented a while back that OIL (USO equivalent) was a good short.  In general all of these issues can be summed up with one chart:

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