European bulls remain strong

Daily analysis on Gold and the Dollar index
March 31, 2015
Daily analysis on Gold and the Dollar index
April 9, 2015

Mario Draghi shows the way….up…up and more UP….European indices are set to drive bears crazy. The debate of whether the European version of QE will boost equity indices like US QE did for US indices is raging on and on….I still see a lot of pessimism everyday in my twitter time line and I still look to find longer-term bullish traders to follow…but…fear of all time highs..the soaring Dollar….the collapse of EURUSD……black swan scenarios..grexit fears…Ukraine..are all ingredients of what most bears want to hear…..I still see traders calling for tops…still stops getting hit…still every 2-3% pull back the start of the next bear market….the sharp decrease last Friday in NFP from US was yet another bull fest with SPX pulling back down nearly 20 points in off market trading due to Good Friday Holiday, come Monday….bears getting stomped….guess what? newer all time highs are coming…why? because everyone is trying to be unique and call for the top…yes the bear market profits when short are sweet….but  to tell you the truth….its sweeter to see all this negativity around and profit being long. My subscribers have well know since which levels I’m long DAX FTSE100 EUROSTOXX50 IBEX…But enough of the talking and lets look at the charts….including the English FTSE100…

EU50

Honestly what are bearish traders seeing that I’m not….with QE just started at least the short-term has so much more upside potential that I cannot ignore a 5% decline as a buy opportunity and not the start of a bear market as many declared that started last Friday and are still trying to close their short positions.

daxlongterm

At least until this summer, Equity indices will remain on the bullish side with new all time highs and stops getting hit every time. Bulls are in control. Longer-term charts show that the slope of the rise is exactly what bears do not want. There is no parabolic rise in equity indices. The grinding climbing higher is what keeps fear alive….fear feeds this rally as few people want to buy at so ‘high’ prices..while others still devoted to perma-bearish blogs and web-sites continue to short the market….while their stops are getting hit..pushing the market even higher…

FTSE100

Life brings you its lessons in two ways. At first…Life gives you its lessons like a comedy….if you don’t get it the first time…Life comes with the second and last lesson like a drama…the market is much more ruthless and only teaches lessons the drama way…cash however in a traders pocket does not run limitless….it is wise to use stops…but try and think what you are doing wrong…if you are only going short and your stops get hit…the market is never wrong…don’t blame the market…don’t blame the CB ‘manipulating’ the market…look at the mirror…blame the one you see there, unless you are a vampire…

So what bearish signs do you see in these charts? I’m all in bullish and so are my clients…October was a big hit to every trader and including me….but look at my tweets at that time when I was screaming that new highs would come. With the recent European equity rally I managed to get back all our losses and additional gains….trading needs patience…trading needs a plan. All my trades are announced in real time through my exclusive for subscribers twitter account @trading2day. Feel free to ask for a free week trial and to see how I work.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.