Technical Analysis of Stock Trends

GLD. SLV. Sell signal. Scaling out of S&P…

Posted on Oct 19, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=6&dy=0&id=p23550335056&a=203282120

All gold does not glitter — or, how does it go?  However it goes the downgap is a trader’s sell signal.  Is there some fundental developent which provokes this action?  No, it’s just traders taking profits — and tired of a one way wave.  This is a trader’s signal on our part.  The trend signal is in Tierra del Fuego (vactioning with Lady Gaga).

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GOOG. AAPL. Belaboring the obvious…

Posted on Oct 18, 2010 by WHC Bassetti.

We often do not comment on the obvious, as GOOG and AAPl are.  If you have major capital they should certainly be in your portfolio.  We trust our readers to recognize the obvious — in fact you should be emailing us pointing out the obvious.

Both issues have popped out of trading ranges and are showing strong buy signals.

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QQQQ. SPX. Going for broke..? or going broke?

Posted on Oct 16, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=QQQQ&p=D&yr=0&mn=6&dy=0&id=p39697041562&a=203282119

Impelled by GOOG and AAPl the Q’s broke above their April high, which must be taken as a very bullish sign until proven otherwise.  Meanwhile the S&P and the Dow appear to be either at resistance, or overcoming it.  Also awaiting proof.  Even if they overcome this resistance (represented by the horizontal line) they must still do as the Qs do –break the April high.  Which means that if they overcome this resistance they have just entered a larger trading range.  But, hey, there’s hay to be made here.

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TLT, tilts again. This may be it.

Posted on Oct 15, 2010 by WHC Bassetti.

Here is a clear signal to short the bonds.  We bought TBT (scaling in).  We also bought the VXX as a volatility play.  These are trades which could turn into trend investments.  At the very least they are reasonably low risk trades and hedge our long trades.

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Don’t bank on it. Cashed in C and BAC

Posted on Oct 14, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=C&p=D&yr=0&mn=6&dy=0&id=p84818044993&a=203282124

We have long thought that in the long run banks will be good investments.  We still think that way.  It’s the short run we’re worried about.  We are willing to pay more for C and BAC later in order to avoid the risk and annoyance and stranded capital now.  We have had small positions in C and BAC.  We’re selling them.

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