Technical Analysis of Stock Trends

More of the same…

Posted on Dec 03, 2011 by WHC Bassetti.

By all rights the explosion represented by the last 6 trading days (8.15%)  should be the kickoff for the upward trend — and it may be. But next week Geithner and the European pooh-bahs will be creating meaningless news in Europe, and that news could either blow the markets away on the upside or sink it to the bottom of the Aegean (a sea close to Greece) (too close).

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Gold and silver take gas…

Posted on Sep 24, 2011 by WHC Bassetti.

Our letter last week in gold was singularly well timed.  And illustrates a valuable lesson.  Don’t wait around.  Something bad might happen.  Traders would now be justified in being short gold and silver, and as may be seen here the long term stop is being threatened.  If the threat is realized it would be unwise to ignore it.

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And you thought the bull market was back on….

Posted on Sep 20, 2011 by WHC Bassetti.

The purpose of weeks like last week is to inspire hope in investors who are clinging to their stocks.  An old Wall Street nostrum has it that the market climbs a wall of worry and slides down a slope of hope.  Not for our readers.  Reality is the only thing that counts here, not opinions and forecasts and bargain stocks to scarf up.  The seven day up wave is kaput, dead, history –The last bar here was taken before the market turned down and finished in the red.

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Dow black cloud. Silver lining. (Gold lining?)

Posted on Jun 07, 2010 by WHC Bassetti.

Actually, maybe it’s a gold lining.  While the Dow was deteriorating gold was contributing to account equity — as was silver.  Both could probably stand add-ons to the position.  You will remember our admonition about portfolio allocation:  increase commitments to profitable positions, decrease commitments to losing positions.

UUP, the dollar index also continued to contribute profits rather than sucking them away.  There is an ongoing lesson here in the value of diversity.

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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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