This is a 10:27 intraday update of Turov on Timing for Monday, April 18, 2011.
First, a little bookkeeping: On the overnight hotline, I said that on Friday, “TOT daily traders went 300% short at SPX 1318…” That was incorrect. The actual short price was 1314.
Now to today: At the time I wrote the overnight Turov on Timing, futures were trading a tad above fair value. I know some TOT daily traders do trade my recommendations on the overnight Globex market, and that was good as you got the best price of the day on your 300% short. Others went 300% short on the 9:30 primary market opening today. All Turov Investment Group Inc. clients whose managed account Program allows inverse funds came into today already maximally short the NASDAQ 100. Anyway – what now?
The news from S&P is as profound as the markets are making it seem. In essence, they are saying that there is a 1/3 chance that the repayment of US government debt is not a 100% certainty. Wow! Even with a printing press! Wow…
TOT daily traders are advised to lower your stop to SPX 1306.55. If the SPX declines to 1291 before that occurs, lower your stop further to SPX 1301, and for each subsequent 5 point decline (which I really don’t expect), lower your stop by an equivalent 5 points.
If still short as we approach the close and if the SPX is below 1300, hold your position overnight. If still short as we approach the close and if the SPX is above 1300, cover the short on the close and go overnight flat.
Thanks for the opportunity to be of service, and I’ll email you again in about 15 hours – or sooner if circumstances warrant.
Turov on Timing is Copyright © 2011 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.