Technical Analysis of Stock Trends

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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Buy the Dow –the analysis

Posted on Sep 28, 2009 by WHC Bassetti.

Let us now discuss some of the most fundamental principles of technical analysis.  Trendlines.  Trendlines could well be called signal lines, and sometimes we do.  The breaking of tendlines is always significant.  The longer the trendline, the more important the signal.  Buying on the break of trendline A here is obviously extremely aggressive — and the most profitable, but as we know there is a high degree of risk that the trend will not continue.

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