5th April 2005

By Tom Hougaard

                                                       08.53

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Good morning,

The market clawed its way back and the long positions are looking much better now in the SP500 and the Dax. I intend to hold them for most of today.

Of course there is always a reason why something happens. I got “lucky” as AIG insurance went from being down 1% on the day to up 5-6% on the day. Even my old “favourite” Wal-Mart reversed today.

The strategy for me will be to be long above 1172 SP500 cash and short below 1168. If we are going back below 1168, it means a quick trip to 1141.

The current target was hit last night of 1178. As we are trading at a premium in the futures market now, I suspect they will gap up stocks later today. The targets are 1184 and 1189 in the SP500 cash index. This is the short-term target, but I expect higher prices throughout this week.

I have attached the short-term chart for the US futures. It does show the potential for a turn in the middle of the day.

click to enlarge

 

Good luck today.

 

Tom