Market Timing for Traders – 02/23/2006

Timing Market Turns - posted at 0917 EST

Market Timing for Traders

Market Timing for Traders and Investors –
The indexes’ price structure and volume structure are weakening by the end of each session. This common as markets approach a time locus. Some indexes, specifically the weak ones, will turn before the time loci arrive.

We contemplate taking at least 50% profits today on both investor and swing positions, IF and only if, there is a touch of SPX 1292.10. We believe that it is quite likely to occur in the morning session. The sell stop on the balance of the positions is also very tight at SPX 1291.20.

For anyone wondering why we are possibly exiting before the time locus points of February 24th/27th, it is our practice of sound money management discipline and trade practices that we are practicing in this strategy at the end of a profitable trade.

We will update here immediately when we either or both trades are executed. But you will see the ‘touches’ of our stop levels as the market trades.

There is a possibility (which I will discuss after seeing today and tomorrow’s market actions) that the time loci coming up Friday and Monday are lows, or another configuration. Do not gamble on it – the projection is still for a high.

Good Trading and God bless

W. B. Busin