Using the 52 weeks high as trading opportunities.

I received some flakes for using a simple method in trading, that is to buy on breaking of 52 weeks high. Some say it will only work in bull market, some say i have no credentials to justify it works. Others hate me for repackaging it as blueline theory because it is a simple method. Although it will be silly of me to try to please all, but i will still explain because I am pretty sure Blueline theory is simple and EFFECTIVE. When I say buy at breaking of the resistance, you do not anyhow buy any stocks that break that high. Daily GrowMoney quickpicks is handpicked by me. I scanned through the charts for those with proper chart base and after volume analysis. Hence it is not a guess work. We are in the bull market since 2003, if resistances were not broken, do you think we can see STI at 2533 ? Did you see how DBS, Capitaland, SIA...etc..recovers from their lows after the 1997 crash and keep breaking resistances to arrive at where they are today? Well I did. Hence that explains that there is nothing wrong in applying blueline theory since we are in a bullish market! What happens if a bear market descends upon us? Then Blueline theory will not work! Price will never break resistance in bearish market hence there will not be any buy signals so how to lose money? Since we notice in a bullish market, prices keep breaking resistance, guess what will happen in bear market? SUPPORT will be broken! That is where you can short ur way down whenever a support is broken. I will be sharing more of this when bear market descends meanwhile, why sit and wait when we can profit from a bullish market? As for credentials, all i can offer is my research work where i share here online for free. I am not a rich old man who has tens years of experience behind me. People who have followed me way back from July'05 should see how i have improved over time. Credentials is earned, i shall just let my quickpick's results do the talking. Lastly, i have packaged this simple method as Blueline theory for the fun factor. Trading is stressful enough and i thought i can provide something different to entertain you abit. Hence you will read funny accronyms from me from time to time. Making money must be fun, otherwise it will be tiring and boring. Now, I still don't understand why there are some who are simply against me from sharing how to profit from a bullish market??? :D May I ask you my dear visitors to show this critics that they are alone? Just post "cheers" in the stock trader's corner....i want to flood out those bearish critics. It will be a spectacular sight! :D


MediaRing for those vested. : ) Swee swee on the weekly chart! Although MediaRing has a new high of 0.365 and it closes at 0.360 on Friday, i do not qualify it in my quickpick list. Simple because it's natural consolidation is before 0.345 and it has broken out! The 0.005 retracement is definitely not a consolidation. You run a risk of babysitting the stock if corrections continue.

GrowMoney QuickPick
Stock: Line of least resistance
Suntec Reits: 1.34 (Reit's shareprice is pegged to the dividend yield. I incuded Suntec to see how it will react to breaking the resistance)
SGX: 4.00
Norelco: 0.450
Hong Fok: 0.590
Zhonguo Powerplus: 0.370
Chinapaper: 0.525
ChinaSun Bio: 0.735
Midas: 0.595
LongCheer: 1.06
ChinaWheels: 0.440
CGTech: 0.420
Sunray: 0.540
Labroy Marine: 1.52


DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.