Technical Analysis of Stock Trends

Gold up, $ up, euro up –what’s up?

Posted on Mar 03, 2010 by WHC Bassetti.

With this power bar up we would go sideways the euro (FXE) or even reverse.  Sideways is conservative.  Long is aggressive.  The crystal ball is very cloudy with a chance of meat balls.

And remember how we told you that trading this with Basing Points was the way to do it?

Sufficiently confused?  We are sideways ourselves.

Continue Reading

March — in like a…

Posted on Mar 01, 2010 by WHC Bassetti.

Must be spring –or close to it because we see buy signals all over the place today.  Ford looks to have definitely broken out, and we have been saying for months that it was ridiculously beaten down.  We will be adding on for our personal accounts.

The Qs are also popping up like daffodils.  Buyable — or in our case addable to.

Continue Reading

Mohammed goes to mountain, or manager goes to Buffet

Posted on Feb 26, 2010 by WHC Bassetti.

An amusing story on seekingalpha.com has it that a young lady fund manager named Goldenberg wrote a letter to Warren Buffet about her stocks.  The letter so impressed him that he asked her to lunch — in Omaha.  She duly went and among other things showed him VRX.  Ever curious we looked at the chart. Two years.

Continue Reading

Gold.

Posted on Feb 25, 2010 by WHC Bassetti.

This is not a positive picture, but perhaps not all is lost.  Two lower highs have been made and lower lows.  The Basing Point stop is illustrated, and we would  definitely honor it.  While gold may regain its glory, sitting through extended downwaves is not necessary.  The proper Basing Point is shown with the stop of 100.04.

Continue Reading

4 days up…downwave in INDU

Posted on Feb 25, 2010 by WHC Bassetti.

Most readers are unaware (blessedly) that a species of technical gnome sits in his garret and computes what happens when the market is up 4 (or down 4) days — how much it gains or loses in the next 5 days, the next 10 days, etc, etc.  We don’t have to do that.  We know that after an upwave there will be a downwave.  Market mischief makers will attempt to exacerbate the volatility resulting from these natural market waves.  We will largely ignore them.

Continue Reading