SHOGUN TRADING STRATEGY
DAILY ANALYSIS FOR 07/03/06

(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

LONG TERM ANALYSIS

TRADING CONDITIONS

Since Monday was only a half day and Tuesday is a holiday, we are, basically, disregarding the market action on Monday. Why? Because most traders took the day off and when they come back Wednesday, they may "undo" any action from Monday.

The market is bumping against a resistance level now. The 1590 level on the NDX is a major level, it is the confirmation level for a possible change of trend, from a long term down trend to a possible up trend.

Please remember that we are not here to predict the market, we will leave that to the talking heads on CNBC, we are only here to follow the market. If the market decides to break resistance and start a bounce back up, it will be its decision and we will just follow it.

If we break resistance, we will be done with the short side for a while, so we suggest closing your short positions. There will be a short term bounce, a short term up trend, so be prepared with the long side, but remember that it is only short term for now.

Hope this helps,

Shay Horowitz - ShogunTrading