Tag Archives: indu

More violence than The Girl Who Played with Fire…

Posted on Jul 17, 2010 by WHC Bassetti.

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2010-07-17-induYesterday we pointed out that the upwave had ended and today the market wreaked vengeance on any traders who ignored that trendline.    It is entirely possible that we will see a violent downwave here, and if you are trading you should have used yesterday’s power bar to get short, and the hourly chart to protect yourself.  As they say, never a dull moment.  The market mischief makers move the market so fast on the opening that you’ve been had before your get your eyes open or your first cup of coffee.  They make up for it blowing it away on the close.  What we ought to have is a 24 hour market so they couldn’t mess with it like this.  In case you haven’t heard they are planning that.  They are going to implement it right after they install the Congress that hasn’t been bought and paid for.

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Double crossed and death crossed. And Dow Theory crossed.

Posted on Jul 09, 2010 by WHC Bassetti.

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2010-07-09-induConsidering the number of short term trend changes we have seen lately, including the close below our stop investors could be excused for feeling double crossed.  Then, on top of that the fabled and feared death cross has occurred.  The “death cross” is illustrated above and occurs when the 50 day moving average crosses under the 200 day moving average.  Many analysts interpret this as a death sign for the bull market.

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Power bar off the bottom.

Posted on Jul 07, 2010 by WHC Bassetti.

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2010-07-07-indub

In market conditions like we have experienced the last thirty or so trading days you must be prepared to change your trading posture according to the situation right now.  Today the market powered up in move that must be respected.  The letter we wrote earlier today is still good advice and is worth being followed by prudent investors.

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Dead cat bounces and the true state of the market.

Posted on Jul 07, 2010 by WHC Bassetti.

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2010-07-07-induTuesday didn’t furnish much of a bounce, but as this is written Wednesday one could think — well, maybe this is over.  And maybe this downwave is over, but what is not over is the general state of the market.  Which is in a trading mode.  And the trading mode is within a downtrend.  During times like these investing and trend following can be very frustrating.

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Stops tripped. Time to hedge or exit.

Posted on Jul 03, 2010 by WHC Bassetti.

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2010-07-03-induThe most destructive habit — or decision, or characteristic or event or test of character– in the markets is to contemplate  a stop long set, and to reconsider it.  Actually it’s ok to reconsider it, but it’s not ok to decline it.  Only if it were set in error should it be negated.  Error means a glaring error in procedure, or in computation.  The present stop is a valid stop.  Those who ignore it will end up like the owners of Enron.  The stop at 9729 is violated.

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