Technical Analysis of Stock Trends

Silver bullets and silver linings…

Posted on Jun 25, 2011 by WHC Bassetti.

Looking at the silver chart against the gold chart several technical features immediately manifest themselves. The long term trendline which still holds out hope (uh-oh. Hope is the thing with wings which has ruined more portfolios than CDOs.) in the gold is broken in silver. So is the short term trendline — and bad things have already happened.

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No old bold pilots….

Posted on Jun 24, 2011 by WHC Bassetti.

There are bold pilots and old pilots, but there are no old bold pilots.  So said the Red Baron.  The aggressive buy signal we saw several days ago has been effectively canceled by the last three days.  Readers should have at the top of their consciousness until informed otherwise our recently reiterated remark (note alliteration) that signals seriously stink in these markets.

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Belaboring the obvious–downwave ends.

Posted on Jun 14, 2011 by WHC Bassetti.

Power bars like this almost invariably mark the end of downwaves.  Meaning traders who are short will now see their profits eaten if they don’t reverse.  It is largely a futile exercise to ask why this is occurring.  It doesn’t matter why.  It’s technical.  The music stopped and the traders are running for chairs.  Shorts now will be left holding the old maid card.

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SLV. Up or down?

Posted on Jun 06, 2011 by WHC Bassetti.

We never, never, never (what never? well, hardly ever) debate a market situation.  That way lies madness.  We put our analysis on the table, listen carefully to any technical criticisms and  let time prove or disprove the analysis.

That said, analyses that silver is in a downtrend are premature.  As the chart demonstrates the trendline from September is intact and offering support to prices.  You will remember Magee’s rule that a trendline break was not definitive until it reached 3%.

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An unmemorable week for Memorial Day.

Posted on May 29, 2011 by WHC Bassetti.

The silver and gold markets appear to have stabilized and to be buyable.  We’re not wild about the abg-z pattern, but such as it is it seems positive for reestablishing positions — or even for adding on.  The reason we’re not wild about it is the weakness of the beta wavelet, and the resulting sharply angled downtrend line.

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