Technical Analysis of Stock Trends

Review of stops in the INDU….

Posted on Mar 10, 2011 by WHC Bassetti.

And of course the Dow chart and stops are the touchstone for all indices.  And also for individual stocks.  Thus, if the the Dow stop is hit you should be looking at all your positions and reviewing their proximity to their own individual Basing Point stops.

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Waves and whirlpools and rapids. INDU power bars.

Posted on Feb 23, 2011 by WHC Bassetti.

This is not quite as extreme as it seems.  It’s an hourly chart, but it dramatizes the last two trading days.  Extreme power bars — daily moves of more than 1%.  Those look like trading signals to us.  Remember, trading signals, not investing or trend following signals.  Don’t come with crocodile tears if you change your method back and forth based on a day or so’s action.  And remember.  Trenders win.  While traders kill each other to get the last chair when the music stops, trenders watch with amusement and scorn.

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Defying gravity. INDU (market) filled with helium, a flammable substance…

Posted on Feb 17, 2011 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=0&mn=9&dy=0&id=p05122701352&a=223624367

59 days, 1302.03 points, 11.91% (#3).  This after the laughable  November downwave (2) (which mainly served as a point to give us a reasonable trendline.)  This after a 50 day wave of 1515 points and 15.25% (1).  We have heard people saying “unbelievable”  and muttering that it’s time to short.  This daily slog upward at more or less a quarter of a percent a day is perfectly calculated to keep short hopes alive.  While slowly bleeding to death from the death of a thousand cuts.

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The long view on the major and minor indices: MDY, INDU, SPX, QQQQ, IWM, MVV

Posted on Feb 09, 2011 by WHC Bassetti.

After looking at these issues last letter and seeing some cracked and broken trendlines curisoity drove us to look at the 5 year charts.  What we got out of that analysis was extremely bullish.  The Russell is threatening its 5 year high, and under current market conditions looks likely to break above it.  Very bullish.

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Examining entrails of the market…IWM, MDY, MVV and INDU

Posted on Feb 05, 2011 by WHC Bassetti.

If you look at this chart of the Dow you have a perfectly healthy looking market.  Prices are well away from the crucial trendline and way away from the Basing Point and stop.  Matters of concern might be the air pocket fearful traders put in the market the 28th.  This was because they can’t believe their good fortune–a 47 (now) day upwave.  It makes them nervous.  Coincident with the relatively long upwave was depressed readings in the VIX.  High readings in the VIX make them nervous, and low readings in the VIX make them nervous.

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