Technical Analysis of Stock Trends

Dump, bump, run — BAC C EEB NYC SLV ETCETC

Posted on Feb 19, 2010 by WHC Bassetti.

We have previously pointed out this pattern, which occurs on “corrective” downwaves of short duration.  The sharp sell off starting a downwave, the rally within the plunge, continued price deteoration.  This pattern allows the drawing of a tight downtrend line.  When broken by a power bar or a stong gap this furnishes a buy signal.  As to whether this buy signal will initiate a real trend is not known until the top of the “bump” wave is taken out, and then the top of the “dump” wave is taken out.

Continue Reading

More fencing…ripostes in EEB, FXE, DIA, SPY, SLV, NYC, ETCETC

Posted on Feb 09, 2010 by WHC Bassetti.

Monday was an anomalous follow up to Friday’s hammer.  And it appeared that Friday was just a freak day sponsored by the put sellers.  But today, trading on news, the market appears to be following through on Friday’s pattern.  The news of course is that the Greeks are not going down.  So far.  So the driving force of the market for some weeks — that is the strength of the dollar and the weakness of the euro is being reversed.  As this is written this is not a proven fact.  It is informed speculation.

Continue Reading

FXE, EEB, CRIS, DJP, SLV, QQQQ, DIA, SPY. We told you so….

Posted on Jan 30, 2010 by WHC Bassetti.

The list above is only a partial one.  It is a list of issues we have recently disrespected, sneered at, denigrated and bailed out of. Add to it EEB, NYC, and TBT.  And what about GLD and SLV (as we have said we are hedge these, or radically lightened up).

Continue Reading

Sell CRIS. EEB not looking good. Stay tuned. Stormy weather today.

Posted on Jan 22, 2010 by WHC Bassetti.

We will be taking some handsome profits in CRIS today.  Some of our students have called this kind of gap “the gap of death”.  And while today’s candlestick might hint at a one day reversal that’s not the way to bet on these extreme gaps.

It is difficult to imagine a long downtrend in EEB, but it is not difficult to imagine being out of it on this chart pattern.

Continue Reading

Blue skies, nothing but blue skies do we see, and…EEB, XLF and…a host of others

Posted on Jan 06, 2010 by WHC Bassetti.

Everywhere you look there are bullish signals.  What happened to the double dip?  Could it be that that rectangle in the Dow and S&P took the place of the downwave?  Could it be that some of those bears threw in the towel?  We read in Marketwatch this morning that some were doing this.  Their losses are the inevitable result of being married to an opinion and not responding to market realities.

Continue Reading