ShepWave Update for Monday. Dow Industrials Analysis.
Posted: 5/13/2006 2:24:17 PM

Get ready for a very profitable period coming up.  The charts spoke very loudly last week.  ShepWave will be looking to enter some 'continuation' trades for the next couple weeks.  We haven't seen outside down weeks for a few years.  They are one of the easiest 'indications' to trade off of.  That is something you won't hear on CNBC.  I show strategies and disciplines in today's update.

CHARTS REMOVED

The 5 minute chart above for the Dow Industrials shows a potential pattern for next week.  The short term low may not be in.  BUT, once we get a break of the down trend from last week look for a quick bounce to be followed by more selling pressure.

CHARTS REMOVED

 The daily chart of the Dow Industrials above shows some mid term targets.  ShepWave will be trading these targets.. Because of the Outside Down Week last week for the S&P and NDX we will NOT be looking for any quick LONG side trades.  Patience is sometimies the key.

An initial target is 11,092.  An ideal target of 10,725 area could be hit by JULY.

On ANY bounce ShepWave will be adding to Positions on the SHORT SIDE for the index.  We saw some nice profits recently.  We are looking at a potentially much easier market to trade for the next several months.

CHARTS REMOVED

The weekly chart for the Dow Industrials above shows the potential pattern that last week's trading can spin off.  I have drawn in two bars in black to show potential action and how it will look on a weekly chart.  A target of 11,090 is set for the end of MAY.

That is all for today.  I will update again by Monday with charts of the S&P 500 and Nasdaq 100 indexes.

Have a great weekend.  Happy Mother's Day.

Shep