.....the market will continue to rise, despite the divergencies, despite the overbought indicators, despite the fear regarding the european debt crisis. The truth is in the market so just follow it. Trend is your friend and never go against it. EURUSD after a weeks comeback below 1,30 is looking ready to reach the upper yellow pitchfork resistance after backtesting the middlepitchfork.
ES_f still inside the upward trend channel giving profits to anyone who buys the pullbacks. Sometime this will end abruptly and thats why you should use stop orders. The most valuable order I place is the stop order. Many times I regret having place one due to wrong choice of stop point. Better safe than sorry...so follow trend with stops around 1340.
As mentioned before, our favorite bank in Greece is back on track after breaking the triple top formation. ALPHA bank looks that has ended the corrective move and starts a new impulsive upwave. Alpha bank got close to our target to enter long and now we have a stop order near 1.35. Now ALPHA BANK @1,94 looks ready to conquer the 2 euro resistance.
Another favorite presented only to my clients was EUROBANK EFG. Greek banks have turned the trend the last few weeks and they look able to give great profits. European Union support, Greek Parliament austerity measures, look favorable for the time being for the banks. At a time noone wanted to touch greek stocks, now they are rallying almost every day. Still everyone is afraid to risk money in greek stocks due to an impeding default. Of course there are risks and the road ahead for the greek economy is rough, nevertheless I believe the stock market is looking much further than we are. The market reflects the economic state in greece after 6 months and psychology always plays the major role in determining prices. So why not follow a market that is greatly undervalued at a major turning point that could mark prices for the next 20 years.
Greek stocks took a beating the last two days, market participants seem extremely fearful of the future move in prices. From extreme complacency and bullishness, people can't believe that after the eurogroup meeting prices have fallen that sharply....The market moves in that way in order for smaller day traders, margin traders, smaller investors will lose faith in their portfolios and get out, by expecting that the bear market is back. I still believe even if the recent rally from Jan lows is a bull trapm the market will see higher prices over the first half of the year. If this is not a bull trap, just take a look at the Argentinian stock exchange after their default.
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