First trading day of 2009 Market Trend

The Dow Jones closed up 258.30 points or 2.94% to 9034.69

That’s the end of the bear market people. New up-trending trend lines have been drawn to show you where this new trend is heading. UP UP UP…..

After producing one of my classic bullish breakouts from bearish trend signals, the market has got stronger.

This is a great time to start looking for a bullish breakouts from bearish trend in any of the DOW JONES 30 stocks.

The Dow Jones isn’t the only market to be bullish.

FTSE

London’s FTSE was the first market to signal a bullish breakout from bearish trend on the 9th December 2009. It then had a slight reaction before continuing the new trend 4 trading days ago.

The NASDAQ and S&P 500 are following the Dow Jones

S&P 500

Here is one of the stocks from the DOW JONES 30 which has just produced a bullish breakout from bearish trend Citigroup ( C )

I was keeping a close eye on this stock at the market open, I wanted to see if it was going to open above the upper bearish trend line. I wasn’t disappointed, the  stock hit my entry price straight away so in I went, LONG Citigroup.

My LONG Entry was @ $6.85

Exit @ Not sure yet, I want to ride this stock up.

Stop @ $6.50

End of Year Market Trend

Happy new year to you all

The Dow Jones closed up 108.00 points or 1.25% to 8776.39

The market produced a bullish breakout from bearish trend 2 trading days ago and has now confirmed this breakout  with another fine up-day.

With support coming @ the Fibonacci 38.2% line it is looking like the end of the bear market and the start of a new uptrending market.

The lines of least resistance have been broken by two powerful up days on low volume.

When everyone is telling me that the markets are going to get worse and its the end of the world as we know it, you know we have hit the bottom.

With a couple of small SHORT losses this last month I was getting a bit worried, I thought my system was failing me.

I completed a full chart, entry and exit analysis to try to find the cause of my losses. I come to the conclusion that my entry and exits where sound enough, I followed the signals correctly but noticed my system does actually fail in two places within a bullish and bearish market.

1 : When a bull market starts to turn into a new down-trending market.

2 : When a bear market starts to turn into a new up-trending market.

This bear market gave me early signs to stand aside a few weeks ago but i didn’t see them or take notice of them. I moved the trend lines slightly and tried to continue on the SHORT side. Greed was in me. I was looking at making a killing but my stops where getting hit and I was out of the trades. Stocks where not moving in the right direction after I was getting my short buy signals (bearish rally breakout). ALARM BELLS should have been ringing, but I was still very much a bear.

I have learnt some very valuble lessons from this bear market which will help me capitalize on the up-trending market and I now feel my trading methods are complete.

The trading methods have taken me full circle, from bull market to bear market and bear market to bull market.

Here are my best entry signals in to bullish and bearish markets.

Bullish breakout from bearish trend = Long Signal

Bullish reaction breakout = Long Signal

Bullish breakout from bullish trend = Long Signal

Bearish breakout from bullish trend = Short Signal

Bearish rally breakout = Short Signal

Bearish breakout from bearish trend = Short Signal

Stay tuned and keep a close eye on the Long signals within this new up-trending market.

Happy new year everyone and what a start to the year it is going to be.