Technical Analysis of Stock Trends

Out Robbing Banks…C and BAC

Posted on Apr 27, 2010 by WHC Bassetti.

No Per Petterson we, nor no Luce neither.  But today traders are robbing us of some of our paper profits in C and BAC.  When the barbarians are coming over the walls it behooves one to look to his defenses.

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4 days up…downwave in INDU

Posted on Feb 25, 2010 by WHC Bassetti.

Most readers are unaware (blessedly) that a species of technical gnome sits in his garret and computes what happens when the market is up 4 (or down 4) days — how much it gains or loses in the next 5 days, the next 10 days, etc, etc.  We don’t have to do that.  We know that after an upwave there will be a downwave.  Market mischief makers will attempt to exacerbate the volatility resulting from these natural market waves.  We will largely ignore them.

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Big doings in the Dow (and the market)

Posted on Jan 24, 2010 by WHC Bassetti.

3 — 572.25 — 5.33 — 50

Three days.  572.25 points.  5.33%.  Closed below the 50 day low.  50 day.

Technicians who know about systems know about the famous Turtle System, which is a variant of the Donchian high/low breakout system.  In this system, to radically over simplify,  the trader buys on a break of the 20 day high and sells on a break of the 20 day low.

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New downwave in the indices. (?)

Posted on Jan 21, 2010 by WHC Bassetti.

As may be seen here in the second chart a trend break is occurring in a 28 day uptrend.  In the first chart we can see that the trendline from March 6 is definitively breached.

There is a trendline from August which might offer some support:

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