Market Timing - 03/06/2006

Timing Market Turns - posted 0913 EST

Market Timing for Swing Traders – 100% short

Market Timing for Investors – 100% short


We are holding short positions in our Swing Trading positions and our core investor position.

We have tightened our stop level on all positions to SPX 1300 as the trigger point for exiting. A close above SPX 1305 to 1310 will insure that we are wrong about the direction of this swing downward. At that level we would remain in cash.

Our sense is that an expanding structure has continued to build as a corrective measure since the January high. We are trying to keep our view objective and simple. Expanding price structures are volatile, but they do end at some point in time. We believe this one is ending.

We hold SPX 1270 as support in the next downward movement. SPX 1250 is our outer extreme for downward movement on this portion of the corrective movement.


Good Trading and God bless

W. B. Busin