This is a 10 a.m. intraday update of Turov on Timing for Wednesday, July 11, 2001.
When I prepared the regular hotline last night, futures were perking up in the night session, and I thought that if they opened strongly in the day session, there might be a shorting opportunity if such strength was not confirmed by internal market indicators. That was not the case as the futures actually opened slightly lower than yesterday’s day session close and have gone nowhere since then. We will remain on the sidelines. However, my observation is that the path of least resistance is lower, yet the potential magnitude of an advance if some unexpected positive news comes out is substantial. On the other hand, if some unexpected positive news does develop and the market does not advance substantially, then all hell could break out on the downside. All in all, a very dangerous market that should be traded only with great caution.
Thanks for calling, and I’ll speak with you again at 3am Eastern time Thursday morning.