From bear to BULL

It has been several months of difficult market behaviour. During that period, I really did not have anything special to write about because as a swing (trend) trader, the various consolidations were not offering me any advantage in my trading. I tried to go short several times and got burned. That told me to wait until the dust settled and suggested to me that I should stay on the sidelines until a new trend emerges. We are there now.

Please click on the chart for a larger picture

This new uptrend has been amazing. True to my approach, I took a long position at 11,650 when I received the first channel breakout signal. After that while the market traced a bullish flag between 12,050 and 11,700, I hedged my position with short positions with some damage as the next positive signal was a channel breakout at 11,950. But it's the double top breakout at 12,050 followed by the QUADRUPLE top breakout is where I loaded up on the long side ending up yesterday with a significant day loss. And Europe made its move and today was what it was...

The bearish resistance line has been broken today and that is very significant. Given that I am not fully invested yet, I now must wait for a overbought pullback to add to my long positions. I must NOT chase this market because typically, the corrections will move the market back to previous significant resistance levels, the next chance to load up.

Pierre Brodeur