Timing Market Turns 10/24/05

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W.B. Busin

It is a wonderful life. Blessed to be in America. Loves- God, family, research, markets and business. More at: - - - Elite Trader's Journal

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Timing Market Turns 10/24/05

We have taken positions and have trailing stops very close to price.

What we want to see now is for all the broad indexes to exceed their October 19th highs - and then continue up with haste.

We know that many stops are at or above those October 19th highs. The battle line there will be interesting. If the indexes just slice right through those levels, just the short covering and stops for mutual funds and hedgers will launch a mighty run upwards.

For our trading purposes, that line of resistance MUST be demolished quickly and with power. So one could expect a modest pullback, or range trading and probing for tomorrow morning. It might just fly over those stops and cause an even greater panic buying spree.

Repeating, caution is advised till this rally "proves itself". Take out recent swing highs with volume and, we will feel comfortable in adding to our positions.

Assuming that the rally is real and underway, it should play out over the next several months as a very easily 'read' market move. It should have 3 clear upward units with 2 corrective units in between those three units.

Always be a blessing to others.

W. B. Busin

** - “IMVHMO”, will always describe directly whatever I write here in this wonderful forum. It is a slightly altered but common Internet acronym or shortcut. Here it means “In My Very Humble Market Opinion”.