Technical Analysis of Stock Trends

Bull market? Bear market? Nu? Mu? Lessons in Semantics…

Posted on Jan 14, 2010 by WHC Bassetti.

There is a famous zen story (mondo) about a monk who asked, does a dog have the Bhudda nature?  To which the zen master answered, mu.  Mu means in this case both “no” and “nothing”.

When asked if we are in a bull market we answer, Nu?

Good god, what is the point? our readers ask.

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Turn out the lights — party is over in $. Buy signals in GLD FXE

Posted on Jan 11, 2010 by WHC Bassetti.

First of all there are no signals which are 75% accurate and dependable.  If there were there would be many undeserving people who would be undeservedly rich — mutual fund managers, hedge fund managers, Goldman traders, etc.

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Blue skies, nothing but blue skies do we see, and…EEB, XLF and…a host of others

Posted on Jan 06, 2010 by WHC Bassetti.

Everywhere you look there are bullish signals.  What happened to the double dip?  Could it be that that rectangle in the Dow and S&P took the place of the downwave?  Could it be that some of those bears threw in the towel?  We read in Marketwatch this morning that some were doing this.  Their losses are the inevitable result of being married to an opinion and not responding to market realities.

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Buy, buy, buy. Buy with both hands. Mortgage your house… do what?

Posted on Jan 05, 2010 by WHC Bassetti.

After  a good night’s sleep and a fizzle of a Fiesta Bowl we looked at a bunch of markets and all we see are buy signals.  This is nothing but what we’ve been saying for months — like F:

We have triple digit returns in F and are adding on.  If you’re not and haven’t you will be taken out behind the woodshed and taught a lesson in trend analysis.

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Out with a whimper, in with a bang. Dow breaks out.

Posted on Jan 05, 2010 by WHC Bassetti.

High volatility continued from the last bar, and it appears that the Dow has broken out of its rectangle.  We regard this as a signal for aggressive traders.  It seems there is some ambiguity here as we will discuss below.

Gold also displays a buy signal with a gap across a high line with a tight downtrend line being broken.

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