SHOGUN TRADING STRATEGY
DAILY ANALYSIS FOR 03/13/06

(Use this chart and commentary to plan your trades. The goal is to trade with the market, never against it. This chart will show our expectation, projection and commentary. This is a very important tool for you.)

SHORT TERM ANALYSIS

The market bounced off the 1635 support level like we talked about in our last newsletter.

LONG TERM ANALYSIS

The market is very close to major support. If we break this, we may start a new long term down trend.

TRADING CONDITIONS

The market bounced off the all important 1635 support level. Remember that this level was our major resistance prior to 2006.

In the first days of this year, the market screamed past the 1635 and made a high at 1761, never to see that high again. This could have been the excitement of a new year.

If we break below the 1635 support level now, we will be marking 2006 as a negative year for the NDX so far. It will also mark the confirmation of a new down trend on the daily charts.

Basically, we have been making lower highs since 2005 while bouncing off the 1635 support. If support breaks, it will confirm the top formation and start the new down trend.

There is one more thing that makes us suspect that a major down trend is coming and that is the pattern on the charts of major market players. For example, DELL, YHOO, INTC, which are the market leaders in their fields, are all at lows. As a matter of fact, DELL is about to break a 3 year low, INTC a 3 year low and YHOO a 2 year low.

This is either a change of the guard, change of leaders, or a serious fundamental change in the upcoming direction of the market.

If the NDX breaks the 1635 level and these market leaders break their respective support levels, we could be starting a serious down trend that could last for a while.

This is just a friendly heads up that we think every trader or investor should be aware of now.

Hope this helps,

Shay Horowitz - ShogunTrading