Technical Analysis of Stock Trends

Haul down the flag…

Posted on Nov 01, 2011 by WHC Bassetti.

Our tattared flag just got canceled so we are hedging our longs with the negative ETF SPXU. Sold TBT, QQQ, GLD AND SLV.

We were obviously in the eye of the hurricane and it may have been a bull trap.  Never a dull moment. As we were saying, they were wrong and it didn’t take long to prove they were wrong.

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Halloween. Boo. QQQQ, SPXU, QID

Posted on Oct 19, 2010 by WHC Bassetti.

We shorted the S&P and the Qs, selling all our long positions.  A trader’s move, scaling in to these positions.  Used SPXU in the S&P, QID in the Qs.

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Black Friday. Grey Friday? Thank god it’s Friday? QID and other hedges

Posted on May 14, 2010 by WHC Bassetti.

Here is a 30 minute bar chart of the short Qs ETF, which we use for hedging.  We bought some of this today, meaning we’re hedging, and we also took some other exposure off the table –sold BAC and some DIA.  Hedged Qs and S&P (buying SPXU).  Bought some UUP to short the euro.

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Slow nags in claiming races — plungers only. CRXX, DNDN

Posted on May 03, 2010 by WHC Bassetti.

CRXX with a suspicious power bar.  Not cleared the high, but maybe worth a two dollar bet.

Somebody knows — or thinks he knows — something about DNDN.  If you bit on this you would want to put a 5% stop under the low of the high day.  Begin by betting small, add on if there is an end to a downwave.  We would buy it if we hadn’t just eaten our hedge, selling the SPXU.  Whenever we get egg on our faces we relax and rethink.

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Explaining the hedge trade SPXU and GLD

Posted on May 01, 2010 by WHC Bassetti.

Friday we put on a partial hedge as an inept response to the present market.  We’ll probably get egg on our face and be proven impatient again.  But here is why.  As you see from the Indu chart here there is a broken short term trend line.  Now, in all likelihood this is the beginning of a sideways pattern and the thing for long term traders is just to sit and grin and bear it.  Always itchy we looked at 12 ETFs tha we follow on a regular basis and found not one buyable at this time and all of them with broken short term trendlines.  The nearest to buying was the IWM, the Russell 2000, and we wouldn’t even buy it at this point.  (We should have bought it long ago.)

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