Technical Analysis of Stock Trends

Thin ice.

WHC Bassetti — Fri, 10 Feb 2012 00:28:39 +0000

After a wave lasting 36 days one begins to examine the quality of the ice we are skating on. It doesn’t make it any easier that the TA community (not to mention the unwashed punditry) are as nervous as cats on a hot tin roof. The SPX actually has feasible trendlines — that is, we [...]

Apples and oranges — perhaps, tulips…

WHC Bassetti — Sat, 04 Feb 2012 00:42:15 +0000

We have a short time ago bought and remarked on the Qs. Here is the story since March of 09. That trendline, when broken (as in all the indices, created an airpocket into which the Qs were sucked, and then an extended sideways congestion. As may be seen here prices have burst out of the [...]

Slow down and smell the tulips…

WHC Bassetti — Mon, 30 Jan 2012 18:51:13 +0000

And time to reprise our famous lecture about tulips which first saw the light of day in 1999 in our seminars at U.C. Berkeley Extension. When we first started talking about tulips students thought they had wandered into a gardening class by mistake. Not. The classic text is Extraordinary Popular Delusions and the Madness of [...]

Achtung! Don’t go to sleep here!

WHC Bassetti — Sat, 28 Jan 2012 19:14:14 +0000

There is never any lack of disagreement amongst the punditry. This is also true for technical analysts. And for fundamental analysts. And for analysts of all other stripes (and spots). That’s why we have horse races and super bowls and the stock markets. In the chart above we see one of the objects of disagreement [...]

Disregard this letter also.

WHC Bassetti — Mon, 23 Jan 2012 02:16:13 +0000

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p40392582161&a=254727527 You can use this link to see a larger chart. We haven’t stopped detesting forecasting, but there is a question in the waves here that should at least be mentioned. Our last comment on potential for this trend, using the Wyckoff measuring method, forecast a wave high of 1860. While this seems fanciful to [...]

A Dow buy signal.

WHC Bassetti — Thu, 19 Jan 2012 18:30:48 +0000

It is impossible to interpret yesterday’s action as anything but a buy signal in the Dow. Prices went to a new recent high on a power bar — and — the downtrend line from March was broken on the same bar. We are buying for our personal account. Taking out the March highs will be [...]

Disregard this letter.

WHC Bassetti — Mon, 16 Jan 2012 04:44:49 +0000

Occasionally there are times when we are required to –like it or not — act like a technical analyst. This is one of those times, so we warn our readers so they can be prepared to take the letter with a large grain of salt. Since the head and shoulders top curse was fulfilled the [...]

Psst. Hey Meester want to see some dirty stocks?

WHC Bassetti — Sat, 07 Jan 2012 19:46:27 +0000

Is there something shameful about talking about bank stocks? Or do you just get enraged when contemplating the obscenities of sub-prime loans, manipulation of minorities into unfavorable loan conditions, or robo signers? Or do you just get high blood pressure contemplating what they did to the country and the economy? Besides that we’re still personally [...]

Mind your Es and Qs….

WHC Bassetti — Thu, 05 Jan 2012 19:21:14 +0000

Impossible to ignore the Qs. Burst out of a big triangle. Big sideways base. We are buying some. Also impossible to ignore the downtrend in the euro, which we have remarked on numerous times. Now another downgap. We are shorting some, using the EUO ETF. Stops shortly. Have to rush down to the pit.

Wake up! Wake up! Santa Claus is finally here.

WHC Bassetti — Tue, 03 Jan 2012 20:23:00 +0000

Talk about a roman candle for new year’s. Not that we believe it. We keep telling you that we don’t believe anything except the sports scores. They wouldn’t dare lie about those. But after months of lying signals and head fakes this looks like a real signal. So we bought the S&P the gold and [...]