Technical Analysis of Stock Trends

Rimm shot on Oracle. Sound and fury signifying…

Posted on Dec 21, 2011 by WHC Bassetti.

A 348 point move in the Dow followed by…duh… probably qualifies as an idiot if not Shakespearean move.  Trying to make sense of it from an economic viewpoint would be a waste of time. It was a purely technical move starting a new wave after two eight day waves and an antidote to trader boredom.  We suspect there will be eight days of upwave.  After all the idiots (oops, pundits) are all primed and waiting for the Santa Claus rally.  Since we don’t do cycles or analogues we look at these things with a fresh, if jaundiced, eye.  If we were looking for an analogue here it would be trench warfare in World War I.  Nonetheless long is still the way to be as indicated by the Basing Point stop at 1131.

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Analyzing the downwave….

Posted on Jun 19, 2011 by WHC Bassetti.

We are now in a 35 day downwave which is 7.87% down from the top.  It has tripped the Variant 2 new high stop, but, as may be seen from the chart the Variant 1 stops are still someway down (about 4%).  Over the past two months we have been urging readers to find some shorts or to look to hedge their positions.  AND those investors who are sitting with the Variant 1 stop in place may be laughing at those of us who traded and who took the Variant 2 new high stop.

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Taking it in the shorts….

Posted on Jun 01, 2011 by WHC Bassetti.

It is definitely time to be putting on shorts.  RIMM.

OPEN.

NOK.  If you have any candidates post them to the edwards-magee googlegroup.

We will gladly comment.

The Book says not to anticipate formations, to act only after they have fulfilled themselves.  But with a tornado coming it seems imperative to at least look at the sky — and the weather forecast is stormy.  Today’s power bar down after the power bar up yesterday is a tornado warning.

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Sell RIMM. iphone too tough. Great charts.

Posted on Sep 25, 2009 by WHC Bassetti.

RIMM is a chartist’s dream.  Look at this chart.  It’s a theoretical wonder.  Talk about dependable signals.  In ’06 it  breaks out of  a consolidation formation on power bars, booms up, forms a flag (or pennant), powers out of it, forms a double top with a perfect neckline (as wll as an upsloping trendline, breaks it and craters, forms double bottom with great neckline, breaks out and finds resistance just around the old neckline.  If you didn’t know better you might say the invisible hand of the market is drawing this to validate all the material in Technical Analysis of Stock Trends, 9th Edition.

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