This is a 10:30 a.m. intraday update of Turov on Timing for Thursday, August 4, 2011.
On yesterday’s 3:30 intraday message, I said, “If the NASDAQ 100 declines during that early time frame [Wednesday’s close through Thursday at 10:45 a.m.], then heavy selling could occur later in the day, in the absence of bullish news.” Well, that’s where we are now.
TOT daily traders are advised to go 300% short at the market at 10:45 if (as seems likely) the NASDAQ 100 is still down on the day at that time. We’ll use the 10:45 price (the “open” on a 10:46 one minute bar chart)as our “official” price. Once short, use a 14 point protective buy stop on the position. With the jobless numbers coming out prior to the opening tomorrow, if still short as we approach the close, cover the short on the close and go overnight flat. [FYI: All managed accounts will also be going into the money market fund on the close today.]
Please note: This is not a panicky “The sky is falling” type recommendation. It’s simply based on the probability between now and the close today. Tomorrow morning will be a new ballgame which we will examine after we see how the market responds to the job numbers.
Thanks for the opportunity to be of service, and I’ll email you again at the regular time tonight.
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