Technical Analysis of Stock Trends

Buy Gold. Buy Silver. Gaps. Power bars.

Posted on Nov 03, 2009 by WHC Bassetti.

A gap and a power bar.  About as good a buy signal as you get.  While the pattern is different in silver we think silver has a buy signal also.

As always these signals are not 100% perfect, and given the animus of the Treasury and the Fed for gold we can depend on their efforts to control the market.

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Where we are (if anywhere), or, should it be where are we?

Posted on Nov 01, 2009 by WHC Bassetti.

Every body take a deep breath and say OM.  Experiencing it last week had a bizarre feeling highlighted by our frenetic efforts to hedge our CANE&M positions so we could make CANGX look bad.  (Harmless jokes — don’t take anything we say seriously.)  (It’s the mutual fund industry we want to make look bad.)

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Fool’s errand.

Posted on Oct 30, 2009 by WHC Bassetti.

At 10:27 San Francisco time with the market looking like this we increased our hedges and are now net short the indices.  As we said earlier attempting to trade these minor waves is a fool’s errand.  Of course we have an analysis, and it is based on the earlier intraday chart, which shows a prevailing short term downtrend.

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Bulls retreat, noses bloodied.

Posted on Oct 30, 2009 by WHC Bassetti.

30 minute chart of Dow, last 10 days.  So we put a partial hedge back on.  We’re beginning to feel like day traders and we don’t like it at all.  Yesterday appeared to break the 10 day down trend but today appears to cancel yesterday.  We are beginning to feel that some serious bear attacks are being made on the market and urge readers to find ways to hedge or protect their portfolios.  We have prevIously mentioned the leveraged ETFs –SPXU, FAZ, QID.   The recommended way to do this is to scale into the hedge, just as one would scale into any position.

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Bears retreat, noses bloodied.

Posted on Oct 29, 2009 by WHC Bassetti.

What a difference a day makes.  This looks to us like the end of the flush, so we lifted our hedges.

Don’t get too comfortable though.  We think there re a lot of smart traders short, though squeezed, and they are desperately looking for reinforcements to drive the market down.  Too bad they can’t analyze trends.

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