TOT daily traders went 200% short at SPX 1289.60 yesterday morning and took a small profit by covering at SPX 1286 about a half hour ago.
On today’s regular message, I said, “The daily model is mixed today, with an indication of a bit more selling in the early going, followed by an upside reversal later in the day.” That expected early selling did not occur because, quoting Reuters, “U.S. stocks rose on Wednesday as a consumer prices report showing core inflation in line with Wall Street expectations relieved worries about rising interest rates.”
The NASDAQ 100 tracking stock (symbol QQQQ) is seriously lagging the SPX, and at this writing is up only a dime. Without confirmation from this high tech index, it is hard to imaging the SPX rallying sharply, although the odds still favor a positive close for the SPX today, assuming no substantive news developments. I’m reluctant to go long in such an environment and recommend standing aside, the positive daily model forecast notwithstanding.
If anything happens to change my opinion, I’ll update again. Otherwise…
Thanks for the opportunity to be of service, and I’ll email you again at the regular time – or sooner if circumstances warrant.
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