Technical Analysis of Stock Trends

T Bonds. Chart nightmares. Inflation/deflation. Stagflation.

Posted on Jul 31, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$UST&p=D&b=5&g=0&id=p30923843948&a=205377734

We conjectured,  just a letter ago that there might be a double top in the bond ETF (TLT).  This chart ought to put paid to that notion.  The bond market may be about to go parabolic. (Read, BUBBLE.)  Here it’s making a new high in the 10 years.  If you’re in it great.  If not stand aside lest you get splattered with the inevitable bloodshed.

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F, TLT (bonds)

Posted on Jul 28, 2010 by WHC Bassetti.

It looks like Ford has completed shaking out weak holders (and traders with stops, including us).  This is a breakout and we’d put a money management stop about 5% down.

More importantly TLT, which is the long bond ETF looks suspicious.

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All that glitters…

Posted on Jul 28, 2010 by WHC Bassetti.

We are partially hedging our gold positions with GLL as this looks like negative developments to us.  More patient traders will observe the Basing Point stop at 110.25.

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Heads up. Head and shoulders? Does it matter?

Posted on Jul 25, 2010 by WHC Bassetti.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=1&mn=0&dy=0&id=p30009483985&a=203282118

We sometimes admonish (also abjure, berate, harass and warn) our graduate students about finding bunny patterns in the clouds in their initial enthusiasm for identifying patterns.  Being the world’s foremost exponent (or proponent) of pattern recognition this might sound strange.  Mox nichts.  We just worry about getting the job done.  This might be a head and shoulders — the favorite pattern of bunny fanciers (who are also busy with Signor Fibonacci counting bunnies).  If it is it forecasts a target of 981.83.

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A new chart technology…

Posted on Jul 20, 2010 by WHC Bassetti.

Bear with us (did we say b***?!)  just a minute while we try to improve the charts.

This week may tell us whether we have a containable downwave, or the beginnings of a serious downtrend.  We now have 5 days on the latest downwavelet and we are waiting to see if the July low will be taken out.  The short Basing Points are marked for anyone who is short.  Generally we use a 3% filter to set the stop above short Basing Points.

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