TRUE NORTH MARKET NOTE -- Tuesday, 17 January 2006  13:18

A quick review from our last note TNMN 12 Jan 06: 'Folks, we're seeing the first signs of the post New Year hangover. It ain't too pretty out there on our monitor at least. In the trading part of your market exposure, get some hedges on if you have not already done so! Who knows how long a correction might last, but at last we have some tangible patterns coming in, one by one: MU, GOOG, EEM, HHH, CL, KLAC, SMH. Goodness gracious, even mighty BRCM has stopped going up! INDU is running quite hard here to the downside, although unconfirmed by volume as yet. For our purposes, we'll print that as a -BE D, not the most common occurence out there for the stately Dow.NQ 1760 has at least broken its short term bull pattern stretching back many sessions. On the cusp of a shift to negative from neutral we suggest. Stops on active positions now tightened; select hedges in place (SMH, GOOG); tempted by SNDK but stopped out earlier which was a blow to morale...'

17/01/2006 12:52 / NQ / 1747 / Widespread weakness from pre release nervousness (IBM, INTC), an investigation into a Japanese unit of YHOO & a downgrade on AMD sends NQ back through the +BE H & through the 1749 level. This is probably going to be a time to keep that stops tight until the current headwinds weaken. The Iran backdrop doesn't help at all. We've seen this type of market before, with rising nervousness off of a low base. No bad thing in our view. Yes, the market will have its period in the sun, but it has to be for the right reasons, and the move has to be built on solid footings off of a sound technical & psychological base.

New charts on active stocks, ETFs, indices & International ETFs & stocks will be posted during the trading day at http://www.truenorthinvesting.com/Chartroom.htm

***************************************************************************************
QQQ/SPY Advisor called it right - again! Sign up for a free trial to QQQ/SPY Advisor and get these alerts the instant they are released, as well as each day superb, highly original commentary on the state of the markets. This system's proprietary QQQQ/SPY signals have back-tested for gains of over 3,000 points on the S&P 500 and over 6,000 points on the Nasdaq 100 over the past 7 years. The system went live April 28, 2005 & has continued to enjoy consistent strong performance.
***************************************************************************************