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Broke Through Trading Range

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As you can see from the graph above we have broken out of the range defined by the green box and into the target upper end of our trading range. You will recall that I’ve written here that we use the pink box as our signal to start taking some profits in our holdings, starting with the weaker ones.

As the market digests this action, we’ll be taking some profits and waiting for the market to move back toward the bottom end of the green box.

As with everything we do, we invest what we see. If, and its a big if, we break above the the top end of the pink box, we will likely not sell anything else as that will be a sign that the top end of the wider range, 1250, is in play – most likely the 2010 high at 1217 (the blue box on the chart).

I’d give odds at less than even that we will break through the top end of the pink box and make the assault on 1217 or 1250 without the bears and shorts trying to take us back into the green box. However, we will keep a watch on the trends and the price action to get a feel for whether there has been a change in the market. If there has been, we will see it and report it to you here.

This video has no tie to this post – I was just in the mood for it.

Enjoy your night!

Mark