SHOGUN TRADING STRATEGY
DAILY ANALYSIS FOR 03/27/06

(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 is waiting on news, it is not moving anywhere.

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 waiting for news. The FOMC, Federal Open Markets Committee, the people in charge of setting up our monetary policy and interest rates, is meeting on Tuesday. We have a new boss in town and everyone wants to see what direction he is going to take us. The market is going to sit tight and wait to see what it does before it moves.

The bad news is that Monday is going to be very slow and Tuesday may be useless. The good news is that the Tuesday meeting may be enough to shake the market out of this range we have been stuck in for four months. It will allow all those traders that have been scared of what their decision will be to come out and play. Just think of all the money that is sitting on the sidelines right now that the real estate market has slowed down just waiting for the stock market to start moving.

We are waiting for the market to break either support or resistance, but the market is still open every day. We have been focusing on more conservative trades, confirmed trend and confirmed reversals. We have been trading for consistency of profits and risk management while the market is moving sideways. We are looking forward to opening up and riding some serious trends.

Hope this helps,

Shay Horowitz - ShogunTrading