ShepWave Special Editorial Report
by ShepWave.com
Posted: 5/3/2006 00:27 EST

CLICK here to go to ShepWave to read updates and analysis.

I bet you are wondering whether you are reading the title right or if I made a typo.  The answer is yes you are reading the title correctly and there is NO TYPO.  I am writing this editorial as a continuation to recent editorial updates.

I have been very entertained lately by the financial network stations.  CNBC has been priceless but they are not alone.  Stressing Markets at '6 year highs', the 'BULLS RALLY' and the like are making headlnes all over.  When will the headlines read "STOCK MARKET CRASH"?  You may not be even considering the possibility that it will be this year.   Ahh, But you may be surprised.  ShepWave analysis shows a potential end to the current 'bullish' cycle and the return of the 'secular BEAR' cycle very soon.  We at ShepWave use many technical analysis methods for gauging the markets.  Granted for the short term we are not always right.  That is why we teach and STRESS trade management techniques through Stop/loss and $$ amount invested.  For Example;  When we enter an options trade we recommend no more than 3% of one's trading protfolio should be used to OPEN ANY OPTION TRADE. 

If one potential timing cycle is correct the DOW INDUSTRIALS can see a 30% sell off by the year's end.  The Nasdaq Indexes could see a 50% sell off and the S&P 500 can see a potential 35% sell off.  That is right.. by the end of 2006.

Our analysis shows that although we have recently been making new highs the strength keeps getting weaker and weaker.  Even the  NYSE Bullish Percentage Index is showing confirming analysis that a major TOP could be upon us.  When the break occurs you could miss out of the first 3-5% of the down move.  That is how quickly it could occur. 

CNBC and similar financial 'comedy' channels will be blaming it on something.  BUT, my question is why they are not showing the viewers this NOW?  The answer is Money.  The fact is that there is a lot more money in being BULLSH than BEARISH.  We know this at ShepWave.  But, there is something else that is important to running a business and having longevity and that is 'integrity'.  I could be a perma BULL like everyone else but that would not be the honest way to operate. 

The Rich and Knowledgable already know what I am telling you.   It is the average person/investor/trader who is always left holding the bag.  Most of you who read this editorial will think,, ahh, I will be ok.  Then when your portfolio is down 35-50% you will think... oh well I can make it back.  But, the question I ask you is;   why take the hit if you can protect yourself and even profit from this turn?

For updates and analysis go to http://www.shepwave.com/

Have a great day.

Shep

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