Technical Analysis of Stock Trends

FNM — the game continues

Posted on Oct 21, 2009 by WHC Bassetti.

This trade was not as skillfully managed as might have been.  The general explanation is that our panic sell off model is not as well articulated as our other systems because generally we’re not much interested in this kind of trading.

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Houston we have a problem…

Posted on Oct 19, 2009 by WHC Bassetti.

Who is Keefe Bruyette and Woods, and does anyone care? (Which way were they in the great bear market?)  Well obviously someone cares because they sent FNM and FRE down about 17% on a gap with a report saying the shares were worthless.  We have sent an email to enforcement@sec.gov  (and you should too) asking them to investigate to see if KBW have a conflict of interest, or if they informed their bosom clients they were going to ambush these issues.

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Tipping point? Or tripping point?

Posted on Oct 18, 2009 by WHC Bassetti.

At this moment we don

Át this moment we don´t know whether we are at the tipping point, or at the tripping point.  The Dow and the S&P tiptoed across the magic mark (Dow) of 10000 and hesitated.  The incessant baying of the punditry makes one think tha the trend will continue — because they are setting up a fearful howl.  10000 is the magic resistance point.  The rally has hit the magic 50% recovery point.  Yakity yakity.  Blah blah.

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Gusher! Oil, Oil in….

Posted on Oct 16, 2009 by WHC Bassetti.

OIL.  As many readers have pointed out OIL has broken out of a triangle and we have a clear buy signal.  But frankly we think the oil rush is over.  The probability of oil returning to its former heights are slim and none.  This is now a trading market and the probable move here is six or seven points.  We might buy two units of it and sell one for a trade when that is achieved and keep the other as a trend trade.

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Buy! Buy! Buy! Well, enough of hype, but in fact there is a Dow buy signal today

Posted on Oct 14, 2009 by WHC Bassetti.

In two minutes traders drove the Dow 80 points through the previous high and  then above 10,000 (after this chart).  These are two very important points.  As we all know the market can crash tomorrow.  And if it does we will hedge or exit.  Today we buy.

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