Dia | Technical Analysis of Stock Trends

Strange things that go dump, bump dump in the night

Posted on Apr 16, 2011 by WHC Bassetti.

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Strangely the dump bump dump pattern, after breaking the downtrend line stalled. obviously the market is well within our stop parameters but strange behavior should always provoke an analysis. Recently many uninformed analysts have been seeing a Kilroy (reverse H&S) pattern here. They are too early, but there might be something in it. Nonetheless the previous Variant 2 stop which was touched on the dump but not exercised is till valid. We are not rigid traders. When stops are hit we evaluate the market and see whether we consider the exercise warranted. We will be especially vigilant if this stop is threatened. But we consider the present behavior well within the definition of a downwave in a bull market.

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Gnarly surfing in deep anxiety waters. DIA, FXE, TLT, IED

Posted on Nov 19, 2010 by WHC Bassetti.

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Most analysts have “indicators” that tip them off as to when the market is going to turn and when to buy and sell. Some have indicators as to general market mood. Outr general market mood indicator is an old west Texas cowboy named Michael who buttonholes us in the bars and coffee houses we frequent. Michael says there is deep unease in the investment community. We believe this 100%. All you have to do to see symptoms of it is look at the major market indices over the past 10 days or so. 1.6% up, 1.78% down. Enough to tip a trader off his surfboard.

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Surge, drift, flush pattern persists — so far. Don’t snooze off.

Posted on Nov 22, 2009 by WHC Bassetti.

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091120dia We are now in the drift part of the pattern after a surprising one day surge at the top. This is better illustrated in the chart below. At the moment there is no sign of the bear wave traders have been hoping for and fearing ever since March 9. Illustrating once more that it is better to read the chart than it is to read the news.