Technical Analysis of Stock Trends

Congratulations! Congratulations to the Putnam Voyager Fund which outperformed 99% of its peers…

Posted on Oct 12, 2009 by WHC Bassetti.

The WSJ today has a full page ad for the Putnam Voyager Fund in which they congratulate themselves on outperforming 99% of their peers., and as you can see from the chart they have been on a performance tear.

But you know us.  Ever like Toto who wants to see what is happening with the wizard behind the curtain we nipped at their heels and guess what we saw.

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Short the bonds.

Posted on Oct 10, 2009 by WHC Bassetti.

A pretty obvious signal to buy TBT the bond shorting ETF.  PST will work too but the chart is not as striking as TBT where a trend line is broken by a power bar on arresting volume.

All the bond ETFs look salable with gaps and heavy power bars down.  Here the SHY with a bull trap top and a signal gap down.

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David vs. Goliath. CanE&M vs. Cangx.

Posted on Oct 08, 2009 by WHC Bassetti.

We couldn’t resist the illustration.  We used to see this exact illustration in Sunday School.  David taking out Goliath with a sling.

An apt metaphor for our contest with IBD”s CANGX.

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Is there a nuclear reactor in your future?

Posted on Oct 07, 2009 by WHC Bassetti.

You could make a case for the Sept 08-May 09 bottom being a rounding bottom –already fulfilled for measuring purposes.

But what if the June 08 – July 09 formation is yet another massive rounding bottom.  Simple arithmetic yields a target of 5.62.

Feasible? After the market we’ve just been through (are still in) anything is feasible.

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Long the Dow and the Qs.

Posted on Oct 05, 2009 by WHC Bassetti.

As we pointed out a day or so ago the wave pattern in the indices has been surge, drift, flush ‘em out and surge.  Today we lifted our Q and Dow hedges and bought the FAS and the QLD.

Ordinarily we would not be so active.  We’re basically lazy and phlegmatic investors.  There is nothing we like more than a months (or years) long trade that quietly piles up profits while we snooze.

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