Technical Analysis of Stock Trends

Power bar!! 2.16% in the SPX

Posted on Dec 01, 2010 by WHC Bassetti.

We often consider volatility explosions to be signals and we think that today’s 250 points (268 range) are worth buying.  So we did.  We added on to our SPX (UPRO) and Q positions (QLD).  We remarked a day or so ago on the bungee-like nature of recent markets. And before that on the bull trap when prices pierced the resistance line.

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Currency misinformation. JPY, CHF

Posted on Nov 29, 2010 by WHC Bassetti.

As you have heard, ad infinitum, and with great emphasis and wailing, The dollar is being weakened — deliberately –in a plot to lower the costs of US exports — as well as  avoiding deflation.  The problem is that the charts show the dollar strengthening against the Yen and against the Swiss franc.

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Bungee markets.

Posted on Nov 28, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=1&mn=0&dy=0&id=p20970412253&a=215498479

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Luck of Irish drives euro lower.

Posted on Nov 23, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=FXE&p=D&yr=0&mn=6&dy=0&id=p88765093810&a=203282122

It appears to us that the euro has resumed its long term downtrend.  Whether it’s the fault of the Irish or Goldman Sachs or the Germans does not concern us, though we are certain that if they listened to us the European economy would be in a lot better shape.  But that is also true for the US economy, where Geithner never returns our calls.  And Congress ignores us.  Well, as the Spanish say, Living well is the best revenge.  For us trading on their incompetence is the best revenge.

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Squirrel markets. Bulls bears mules hibernate. Playing defense better than the 49ers.

Posted on Nov 22, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$INDU&p=60&yr=0&mn=2&dy=0&id=p25782902376&a=202457238

Squirrel markets can drive you nuts.  It certainly drove us nuts to write this commentary.  And it’s probably driving our readers nuts.  It was not till we went to the hourly chart that it became clear to us.  As you can see we are in a clear downwave, now 12 days long and about 3 and a half  percent.

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