Technical Analysis of Stock Trends

$spx, $indu — the big (big) picture…

Posted on Sep 11, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$INDU&p=W&yr=4&mn=0&dy=0&id=p14903824659&a=205853690

See anything interesting here?  Unlike what you see is what you get, what you see is what makes you successful or not.  Was it Goethe who said you see what you know?  What we know is that these two horizontal lines define the sideways mule market.  In the Dow about 1640 points.  And about a year in duration.

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C, BAC, F No signals but….

Posted on Sep 10, 2010 by WHC Bassetti.

We have remarked that  some years from now that our readers will tell their grandchildren — yes kids, grandpa bought (F, C, BAC) at $3 and now it’s at 30.  (Modestly) — of course I’m no genius…

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Buy signals. SPY, ETC. ETC…

Posted on Sep 05, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=1&mn=0&dy=0&id=p62881197949&a=207879904

With powerbars and gaps in the average the only interpretation is buy signals in the major indices.  The crucial signal is the surge across the tight downtrend line in the humpty dumpty pattern.  This signal is always aggressive — or appears so.  And we are mired in a sideways or mule market  as defined by the two horizontal lines  So this may just be a trading move, rather than the start of the great bull market which will carry the S&P to 1565 as we so rashly predicted to trigger this nasty trading market.

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TLT tilts. We buy silver (SLV, AGQ)

Posted on Sep 03, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=1&mn=0&dy=0&id=p20970412253&a=207054001

Jim Rogers couldn’t have called this better.  TBT which we bought is the short of this.  Based on this action it could go a lot lower.

Meanwhile smarty pants sold his silver and had to buy it back today.  Remains to be seen which was the good trade.  We are very suspicious, and think the gold will be held in the trading range — silver?  who knows?  But the chart says be long.

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Buying the Qs, selling the gold.

Posted on Sep 02, 2010 by WHC Bassetti.

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

We bought the Qs based on power bar across the trendline on dumpety bumpety down wave pattern.  This is a trade, not a system or trend position.

We also sold the gold  (and the silver).  Why would we do that, when we have basically been long gold since 2003?  Once again this is a trade, not a systems move.

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