Timing Market Turns 12/08/2005

Market Timing 12/08/2005

IMVHMO** – Market Timing for Friday, 12/08/2005

We don’t mind saying that we are ambivalent about covering our longs.

It is the structure and price that has us scratching our ear, wondering which scenario will play out today and tomorrow.

If the indexes are finishing corrective moves since November 28th, the independent timing of the locus points to higher prices within the next 2 to 3 days.

I still post shorter term/intraday trades over at this free site: W. B. Busin Journal at Elite Trader

At this time, the larger picture requires clarity if it is anything other than bullish. Since we have a little evidence of some short term “exuberance”, it is understandable that we can interpret the current writhing/swinging market indexes as trying to work off a bit of that bullishness.

I will say that this ambivalence is not an unfamiliar circumstance. It is often the condition accompanying 4th wave corrections or the 1st run off of the lows in a 4th.

100% Short

So, we have decided to go 100% short at this time locus at 11:45. We expect to see at least a touch of SPX 1269 today or tomorrow. If price and volume push through that level, then we will have minor confirmation that the 5th movement upward has begun.

The levels that we see as resistance (closing basis) for the next move would begin at SPX 1285 at the lower (5th failure) and SPX 1315 on the high level range.

Gaps

S & P 500 futures traders are wary of getting any upward traction with the large gap that opened on December 1st (1252), and the remaining gap at 1200 on October 31st. Much of the gap at 1252 was covered yesterday.

Until the structure shows itself to be completing the correction, in the volume parameters, we are comfortable being short the major indexes.

An upward move through the SPX 1275 level (close) with time locus and volume data runs confirming would likely get us ready to reverse this short.

Good trading and God bless

Merry Christmas and Happy Hannukah

W. B. Busin

P.S. We hope that the blog allows us to post more frequently. The good folks here have tried to solve the problem.

Thank you Joel and Scott.

** – 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.