SHOGUN TRADING STRATEGY
DAILY ANALYSIS FOR 03/20/06

(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

Not much happened on Friday. We are looking for the next short term trend to build up.

LONG TERM ANALYSIS

The market is still swinging within the same range, between support and resistance levels. Until we break one of these levels, we are stuck inside the range.

TRADING CONDITIONS

The market is accumulating strength right now. This is a pressure cooker that is building up steam, waiting for the lid to be twisted off. The longer this market stays within the well defined support and resistance levels, the more steam it builds up. When the market breaks either support or resistance, the pressure will be released and we will start on a new trend with lots of momentum.

We have been in this tight range since November of last year. A bump above the 1706 resistance of below the 1635 support will trigger a new trend. Our plan is to be there when it does.

In the mean time, we are playing some trend continuations and trend reversals, while always keeping in mind the potential for a market wide breakout.

Hope this helps,

Shay Horowitz - ShogunTrading