Technical Analysis of Stock Trends

Gnarly surfing in deep anxiety waters. DIA, FXE, TLT, IED

Posted on Nov 19, 2010 by WHC Bassetti.

Most analysts have “indicators” that tip them off as to when the market is going to turn and when to buy and sell.  Some have indicators as to general market mood.  Outr general market mood indicator is an old west Texas cowboy named Michael who buttonholes us in the bars and coffee houses we frequent.  Michael says there is deep unease in the investment community.  We believe this 100%.  All you have to do to see symptoms of it is look at the major market indices over the past 10 days or so.  1.6% up, 1.78% down.  Enough to tip a trader off his surfboard.

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GM. What’s good for… is good for America…

Posted on Nov 18, 2010 by WHC Bassetti.

Sometimes we don’t need a chart to make a trading decision.  The rescue of GM is one of the great sagas of American business and those who criticize it are economic Know-nothingss.  Now a restructured GM is coming back to public trading.  We are completely optimistic about the future of GM.  It is tied to the economic future of the country.  We think anyone who doesn’t buy GM at this point will eat their hearts out in 5 years.

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New Wave. Down in bonds, metals, equities. TLT, SPX, GLD

Posted on Nov 16, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&b=5&g=0&id=p75064008702&a=203281655

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Dow: Tiptoeing along the razor’s edge.

Posted on Nov 14, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&b=5&g=0&id=p75064008702&a=203281655

Friday we looked at the market after a six day down wavelet and considered (for trading purposes) whether to sell.  So we wound up increasing our position in the SPXl and in the Qs.  Monday we may be sorry,  or not.  But one way the week’s action may be regarded is as what old time technicians call a “throwback” — that is a return of prices to the breakout line.  There is of course the market fact that five days down in the market is a (at least) temporary buy signal — in normal times, if there are any of those left.

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Holy cats Batman, GLD, SLV, TLT go crazy

Posted on Nov 10, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=6&dy=0&id=p59476852126&a=203282121

http://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=1&mn=0&dy=0&id=p20970412253&a=203282126

SLV:  3.57%.  GLD:  4.10% and TLT: 2.33%.

Ranges for the metals and bonds.  When we first saw the markets freaking out we tried to call Batman but his phone was busy.  Then we learned that the Merc had increased margins on silver contracts.  That always causes perturbations if not major and minor chaos.  For traders it looked like a heavy duty reversal day. and depending on where you got in and got out it could have been fatal.  We closed our silver and gold trading positions.

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