Timing Market Turns 3 - 04/04/2006

Market Timing - posted at 1605 EST

Swing trade - 100% long positions; stop for all positions to SPX 1290.

Investor core - 100% long positions; stop for all positions to SPX 1290.


We expect the upward move to progress through tomorrow's afternoon session. We no longer have expectations of a powerful upward move lasting multiple days. The intraday structure has shown signals of transformation to "ratchet and spike" behavior. This is not uncommon but it does make volume studies more complicated.

A strategy we may use in this environment is to set a target for each index position and take 50% or even 100% of the position to a cash position. We will let the indexes push that agenda by their action before the next major time locus on April 11th. Or, we may move the stops up much closer to the current range before the 11th.

More later in the evening EST. Sometimes I forget it is evening in the east but afternoon out here. :) When the European session opens for currencies, it's only midnight here. Short naps in the afternoon allow me to trade for a few hours there, which is all one needs in that marketplace.



Good Trading and God bless

W. B. Busin