Technical Analysis of Stock Trends

Fun stuff. Gold, silver, platinum

Posted on Nov 30, 2009 by WHC Bassetti.

Tis the season to begin thinking about wearing this stuff instead of  trading it.  But first we have to manage our trades before we hop off to breakfast at Tiffany’s.

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Gold. Gaps. Golly–gee–whiz.

Posted on Nov 24, 2009 by WHC Bassetti.

Stock investors are now looking at something in GLD that futures traders are long familiar with — repeated gaps.  These rarely occur in stocks, but are common in commodity blow-off situations. (See SLV and PGM also.)

Here we have a breakaway gap followed by a power bar (!) followed by two runaway gaps.  Well, obviously there must be some cook book which tells you what to do when this occurs.  Not.

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Buy Gold. Buy Silver. Gaps. Power bars.

Posted on Nov 03, 2009 by WHC Bassetti.

A gap and a power bar.  About as good a buy signal as you get.  While the pattern is different in silver we think silver has a buy signal also.

As always these signals are not 100% perfect, and given the animus of the Treasury and the Fed for gold we can depend on their efforts to control the market.

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Gold breakout and runaway? Or more heartbreak and psoriasis…?

Posted on Sep 13, 2009 by WHC Bassetti.

After being spooked by what looked at first glance like an exhaustion gap we followed good practice and set a stop instead of bailing on gold.  So far this is productive.  Now we have an up gap — a bullish signal, in fact you could, if aggressive, add to your position.  Note:  aggressive.  Of course the new high is bullish also.

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Fooled by gold again…

Posted on Aug 04, 2009 by WHC Bassetti.

Beguiled by our recent trades in gold and silver we happened to think back to  our adventures in the commodity markets of the ’70s.  At Commodity Investment Service we were managing a lot of client money in addition to our own.  We made about 100 losing trades (a mild exaggeration) in silver until our clents were screaming and asking us to quit trading silver.  (In tears.)  Shortly thereafter we got long silver and were long silver in the great Hunt silver market.  We made a small fortune.

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