Kloffe 20/4/09 - Bullish trend should continue

This market just went higher amongst the market experts' disbelief. This is just to show market often lead the way before the fundamentals surface up. I am not saying that the current global financial crisis is over, but this reflect the returns of some form of confidence to the market base on all the international governments' efforts to solve the problem. Of course this confidence can easily disappear again as fast as they appear.

Meanwhile the daily ADX is still surging and the MACD is still going up. So I have little reason to say that the market is over. The ADX is now at 35 which is confirming a strong trend is already in place. But it would be logical to expect the market to consolidate and retrace a bit now and then.



The weekly chart has just flashed another buy signal when the D+ crossed above the D-. So by following Wells Wilder's extreme point trading rule - if price goes above last week's high, then the buy signal would be confirmed. Price still maintain above the Bollinger Band top and both the Stochastic and MACD continue to rise, we have little reason that this bull is over.

I would place my stop at 942 to protect my profit and I would not talk about the return of the bear unless I see price closing of below 910.