Technical Analysis of Stock Trends

One historic move after another. Dow suffers second biggest drop in history.

Posted on Oct 15, 2008 by WHC Bassetti.

Surprise.  Surprise.  Surprise.  Enough already.  Second biggest drop of Dow in history.

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October 13 2008 A Lesson in Morgan Stanley (up 87%!)

Posted on Oct 13, 2008 by WHC Bassetti.

October 13 2008 Morgan Stanley in the great apotheosis.  (Sorry for the college vocabulary.  Maybe Gotterdammerung would be better)

As a comment, and a lesson and as a possible investment it is worth looking at Morgan Stanley the last two trading days.

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October 13 2008. Dow soars 11% in historic rise. Probably the influence of the great pumpkin.

Posted on Oct 13, 2008 by WHC Bassetti.

October 13 2008   Astounding.  Miraculous. Weird.

Speaking of the madness of crowds and herd behavior.  Well, we were weren’t we?  An 11% day in the Dow?  As we said Friday short traders should have liquidated on the close.  If they weren’t they took a pounding today.

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October 11 2008 Shades of 1929. 1000 point range in the Dow

Posted on Oct 11, 2008 by WHC Bassetti.

October 11 2008 Friday Volatility in the Dow Industrials

Climax day? Abject Capitulation? Surrender? Throwing in the towel? Who knows?

Friday, in another example of bungee markets the Dow transversed 1000 points like a squirrel on meth running up and down a tree. We have called these markets bungee markets and squirrel markets. It reminds us of the time our golden retriever Rosebud (named for the sleigh (or Marion Davies)) ate the kid’s chocolate birthday cake (entire) and then proceeded to act like the Dow for a couple of hours running frantically to and fro.

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Trouble and strife. Catch a falling knife? Not on your life.

Posted on Oct 08, 2008 by WHC Bassetti.

Hundreds, if not thousands –perhaps even millions– of traders, investors and technicians are waiting eagerly on the sidelines like the boomer sooners of the Oklahoma land rush hoping to catch the bottom of the panic. This is known in the trade as catching the falling knife. It is not a recommended strategy (what is the difference between a tactic and a strategy? as John McCain would say).

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