Tag Archives: indu

Broken trendlines come home to roost…

Posted on Jun 10, 2011 by WHC Bassetti.

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All the omens are bad — said the Delphic oracle to Cyrus…  The Dow Theory just threw off a sell signal, the long term trendlines from March 09 (!) are broken and today the Basing Point New High Variant 2 stop is taken out.  As is obvious the wave low Variant 1 stop is alive, but not well.  It is sweating bullets as it watches a train bearing down on it.  You can see it skulking just at the bottom of the chart.

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The state of the market…

Posted on Jun 03, 2011 by WHC Bassetti.

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The trendline from March 09 is broken.  As we have said repeatedly, trendline breaks always have consequences.  Some of the minor trendlines were already broken (obviously — and the harbingers of this break).  While the Basing Point stops have not been hit it never hurts to do some hedging, or even some scaling out.  How big a downwave — or sidewave– results here remains to be seen, but waves are often proportional.  There are of course those who compute fibonacci retracements and those who shake the old crystal ball.  We are still long gold and silver and the Swiss franc, but we sold the Ford in one of the kids’ accounts today for about a handsome profit, as it was bought as a lottery ticket in the great crash.

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An unmemorable week for Memorial Day.

Posted on May 29, 2011 by WHC Bassetti.

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The silver and gold markets appear to have stabilized and to be buyable.  We’re not wild about the abg-z pattern, but such as it is it seems positive for reestablishing positions — or even for adding on.  The reason we’re not wild about it is the weakness of the beta wavelet, and the resulting sharply angled downtrend line.

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End of world doesn’t happen. Except for Dow and Euro.

Posted on May 23, 2011 by WHC Bassetti.

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Here’s the long and the short of it.  Top chart, market since March 09 showing the long term trendline.  As we see in the lower chart the short term trendline is broken and price is flirting with the long term trendline.  This is no casual flirtation.  It is more like Dominique Straus-Kahn about to do violence to an unsuspecting market.  (or very nervous market)

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INDU. State of the market.

Posted on May 21, 2011 by WHC Bassetti.

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Five years of the Dow.  And everyone and his dog (of the Dow) is anxiously asking what’s next (?).  Well, what is next?  First of all a trend this powerful and long is not reversed by a few talking heads and pundits carrying end of the world as we know it signs.  As an example of how wrong they can be, is the rapture occurring in your neighborhood today?  There.  Of course that guy with the sign will be right one of these days.  But not today.

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