A little anecdotal observation before we begin.

Last night, I was noting the daily indicator +6 rating on both the 10 and 5 year notes. (Aug 30 posting).   I woke up at about 7:00 this morning planning on going downstairs and buying both markets on the open.  But I fell back asleep.  I don't normally trade anything but the indexes and they open at 8:30.  By the time I got to my screen, both markets had rallied about 6-10 points off their open.

Great satisfaction�"being able to say “my signals were brilliant….if only I'd followed them.”  That's the kind of lament you hear all the time at industry cocktail parties.  Guess I'm just one of the mill and drink crowd.

Anyway�"note the -5 ratings for tomorrow on both the S&Ps and Nasdaq.  (Murphy's Law may apply now that I verbalize one set of signals after having missed others, but I'll put it out there for what it's worth…..)

One other interesting aside.  Contrary to what the indexes normally do on the last trading day of the month, 2005 has seen 5 down days out of 7 so far.  Again, for whatever it's worth…..

Dynamic Monthly Biases for August 31

Hold shorts in all three indexes.

The bottom two rows determine the signal.  Dynamic Day One trumps everything�"you always follow it.  When it's neutral, the Monthly Perpetual provides the direction.  Click here for a more in-depth explanation of the rules.

Daily CzarChart for August 31

The bottom row provides the direction of the bias at the open: long (L) or short (S).  When it's neutral, it will read zero (0).  Click here for a more in-depth explanation of the rules.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented in this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.