SHOGUN TRADING
DAILY ANALYSIS FOR 05/15/06

(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 sharp move continued on Friday, but with less momentum. The market seems to be slowing down into the support level.

LONG TERM ANALYSIS

Right on top of long term support. If we break this level, we are going in for a longer term down trend.

TRADING CONDITIONS

The market showed great momentum last week. Right after FOMC meeting, the people who control our interest rates, the market decided to wake up and start a sharp down trend.

Notice that we did NOT break the 1635 support level though, it is the support level of our six months channel. This means, basically, that we are not yet in a long term down trend, the market is not out of the woods yet.

We do expect some profit taking in the first part of the week, followed by further weakness and possible break of the 1635. We will believe it when we see it.

Hope this helps,

Shay Horowitz - ShogunTrading