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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (43217)	3/29/2006 1:44:36 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69592

March 28, 2006 The indices marked time yesterday ahead of the FOMC meeting that takes place today. The S&P 500 slipped back marginally to 1301 and the DJIA declined by 0.3% to close at 11,250. The Russell 2000 recorded a quiet session but managed to eke out another all time high as it closed just above 754 and fractionally higher than last Friday's close. As the candlestick formation, a Doji Hammer, reveals the index closed more or less on its high for the day which suggests a confident posture as we head toward the FOMC decision. The Nasdaq 100 (^NDX) closed above 1680 for a very slight gain on Friday's close. In reviewing the daily charts of some of the constituent stocks we are seeing some positive volume characteristics and the index itself appears to be preparing for another attempt to take on the top of its recent range. Just how much capacity there is for surprise in today's interest rate decision is hard to read but since it is the first meeting not to be chaired by Alan Greenspan in eighteen years there is always the possibility of some fireworks if the linguistic nuances are decoded in an adverse manner. The iShares exchange traded fund for the semiconductor sector, IGW, is showing positive signs and could be ready to rally. We normally review the alternative sector fund, SMH, but this time the IGW chart seems to have clearer evidence of positive divergences. Within the sector some of the individual names we are watching include KLAC, MU, and ALTR. The Gold and Silver index (^XAU) has registered two consecutive upward island gaps and while it could run into resistance just above yesterday's close there is evidence of accumulation within the sector. Pan American Silver, PAAS, has broken out above its recent trading range and Newmont Mining also looks poised to move higher following weakness throughout February and most of March. TRADE OPPORTUNITIES/SETUPS FOR TUESDAY MARCH 28, 2006 The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session. For full details on time horizons, risk management and hedging techniques please visit tradewithform.com American Pharmaceutical Partners (APPX) is showing unusually positive money flow within a narrow volatility range. This is often the harbinger for a decisive breakout. As discussed above Newmont Mining seems to have successfully rebounded from its 200 day EMA and there is evidence that the tide has turned since the selling began in early February. XM Satellite Radio could also be on the verge of a breakout as the volatility range is very constricted and the money flow is abnormally positive. THQI has been in our portfolio for a few sessions on the long side and today could be the decisive day after yesterday's better than average volume at the intersection of two EMA's. ABOUT CLIVE CORCORAN Clive Corcoran is the publisher of tradewithform.com. Based in London, he is a trading system developer and has been an active trader for many years on both sides of the Atlantic. He is also the Director of Research & Development of Morphology Management Inc, a company which offers decision support systems and risk management advice to asset managers and hedge funds. He is a featured speaker at trading seminars and workshops. He can be contacted at clive.corcoran@tradewithform.com