Technical Analysis of Stock Trends

CANGX can’t. CANE&M can.

Posted on Oct 05, 2009 by WHC Bassetti.

Mark this chart well.  It is the zero kilometer (as they say Tour de France) in our race with CANGX, using our horse, CANE&M (our account where we put our token trades competing with Attila the Hun’s newspaper).

Today we bought the QLD and the FAS.  Easy trades.  No brainers.  The risk is absolutely clear.

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Long the Dow and the Qs.

Posted on Oct 05, 2009 by WHC Bassetti.

As we pointed out a day or so ago the wave pattern in the indices has been surge, drift, flush ‘em out and surge.  Today we lifted our Q and Dow hedges and bought the FAS and the QLD.

Ordinarily we would not be so active.  We’re basically lazy and phlegmatic investors.  There is nothing we like more than a months (or years) long trade that quietly piles up profits while we snooze.

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Short the techs? So says Dvorak.

Posted on Oct 03, 2009 by WHC Bassetti.

Driven by the desire to make fun of talking heads and pundits we often check up on them to see what silly things they are saying at present.  Not that we are saying that Dvorak (Marketwatch) is silly (right now).

It’s not particularly silly, but it’s not exactly a recommendation to good practice either.  He is contending that the tech stocks are due for a correction and even recommending they be shorted.

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Is Apple going to 1,500? And if not, why not?

Posted on Oct 03, 2009 by WHC Bassetti.

We do love Apple.  We have made dozens of studies of it and use it as an example all the time.  For some weird reason we have never owned it, although our analyses have been extremely accurate.  Just one of those funny things like loving Sandra Bullock, but never owning her.

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Should you be long the Dow? Yes. No. should you be hedged now? Yes. No. Maybe. Have you noticed it’s October?

Posted on Oct 02, 2009 by WHC Bassetti.

This is written during market hours, so it may be completely cockeyed by the close.  But we hedged our long Q and DIA positions.

Why is it we get jumpy in October?  Is it all those fond memories of 1987 etc?  (Actually we made a killing in 1987 in the market — unfortunately the market made a killing too — it killed the company we were running.)

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