Should we chase the markets here?
OR
Should we do what has delivered us a 79% return in 3 1/2 years which is ALLOW STOCKS TO COME TO US?
After all, we’ve all seen for the better part of 2011 that chasing buses has been hazardous to ones health now hasn’t it. This is especially true for those who are not in control of their emotions and are of an impulsive nature.

So what would you rather do? Leave it alone or allow yourself to get sucked into all the hoopla. After all, as you can see from the chart below major resistance is just ahead folks. Another gap up day like this morning puts us at Major Resistance. And then what? Have you thought about that? All AFTER we’ve been running for the last 3 months?

Thanks anyway we say. If we miss the next 15 or so points on the S&P 500 so be it. It’s only January you know. And we’d rather allow the indexes to stage a Pullback Off Highs (POH) before we consider anything on the long side. Should the markets pullback, we are prepared to buy stocks that have also pulled back into support.
So let’s take a look at HP:

Here we have a stock that is pulling back to support at the uptrend line and 50-day with other areas of support below that. It’s tops on our watch list. A break above the pink line triggers a long side trade

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By David Grandey www.allabouttrends.net

To learn more, sign up for our free newsletter and receive our free report -- "How To Outperform 90% Of Wall Street With Just $500 A Week."

David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains. A successful canslim-based stock market investor for the past 10 years, he has worked for Meriwest Credit Union Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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