Friday, October 28, 2011

The Other Side

I have published several posts of late, some of bearish nature,some of bullish nature. Admittedly, I have been leaning towards the bearish side slightly, and as much as I have always tried to be completely neutral, and "neither bullish nor bearish" I find being neutral nearly impossible. Most people who say that they are completely neutral are full of it, and there are very few people on the stream ( but there are a few) I know of who can honestly claim their complete neutrality.I realize that achieving this state of total neutrality is an absolute prerequisite to being a successful trader, and I am trying harder and harder each day to truly believe and embrace the fact the market never produces good or bad information,it just produces information. Here are two charts, a weekly and a monthly, that have the possibility of producing very bullish results in the near future:

A bearish rising wedge from July 2010 that might have failed could bring a fast move up to top of wedge, which would result in a move to above 1400, breaking the neckline of this inverse head and shoulders:

A break of the neckline of 1400 on the weekly( a possible effect of the failed bearish rising wedge breakdown on the weekly which I pointed out) would mean a break of this monthly descending trendline (which is not coincidentally also at 1400), and a test of this monthly neckline of this monthly huge inverse head and shoulders possibly at 1550 with the additive of a bullish higher right shoulder:

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