After being in positive territory most of the day, the S&P 500 (SPX) ended the day down 3.75 points yesterday to close at 1254.42.  TOT daily traders were long for the session and liquidated the position on the close.

Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8573.29 cumulative SPX points, compared to a gain of 795.49 points in the index itself over the same period. 

The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several years.

Both the long and short term models remain neutral.  However, these models are weakening and could turn negative at any time.

On yesterday’s message, I said, “the risk component of the model is likely to be extraordinarily high Friday,” and that is indeed the case.  That moves the overall model into a neutral mode.  We will spend the last day of the year on the sidelines.

I envision 2006 becoming a solidly bearish year, with the SPX declining by at least 20%.  However, the models do not yet indicate that it is time to get exceedingly negative; that time will come in due course.

Have a safe and enjoyable weekend, and a healthy and prosperous New Year.

Thanks for the opportunity to be of service, and I’ll email you again in 2006!

Turov on Timing is Copyright (c) 2005 by Turov Investment Group Inc. All rights reserved.  Turov on Timing is for personal use only.  All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email.  Re-publication and distribution is strictly prohibited.  No part may be reproduced without the permission of the Turov Investment Group Inc.