Technical Analysis of Stock Trends

QQQQs throw off buy signal

Posted on Dec 23, 2009 by WHC Bassetti.

This appears to be more than just an extension of the range.  Interesting, and may be a harbinger of things to come in the major indices.  We added to our Qs position.

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Bond implosion coming. TBT a way to play it.

Posted on Dec 22, 2009 by WHC Bassetti.

This looks like buy signals in TBT, a short bond ETF.  We are already long TBT and will add to our position.

The punditry is predicting lower bond prices and they are right.  The only question is when and how much and whether the market will gyrate around and give you some pain prior to some profit.

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Dow goes rectangular.

Posted on Dec 20, 2009 by WHC Bassetti.

Since July the Dow has advanced in more or less regular waves with the surge drift flush pattern.  Now this pattern appears to be ending and a rectangle is being set up.

This honors the observation that an up wave may be followed by a sidewave, as well as a downwave.

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Sold the euro. Good trade. Still short.

Posted on Dec 19, 2009 by WHC Bassetti.

Though not into hype or chest beating (except when about to grab a jungle vine and swing with Jane) the euro trade deserves to be recalled.  We bought UUP which is a way to play it — more or less like taking a shower in a raincoat.  Had this been done in the FX markets ….

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Busier, busier…put gold hedge back on

Posted on Dec 17, 2009 by WHC Bassetti.

30 minute chart of gold.  We lifted the gold hedge yesterday based on this chart.  We’re putting the hedge back on today based on this chart.  We keep telling readers to invest not trade.  See what a hassle it is?  We didn’t re-hedge silver and platinum.  Whether or not the current pattern forming in the metals is a flag or not remains to be seen.

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