This is a 10:37 intraday update of Turov on Timing for Friday, October 21, 2011.
Well, I expected a gap opening this morning, and we got it. Unfortunately, it was to the upside rather than to the downside! My best guess is that the strength is coming from shorts, nervous about the Sunday meeting in Europe. In any event, it puts our 200% short position in a precarious position.
Whenever I’m really conflicted about what to do regarding an open position, I ask myself the question, “What would I do if I had no position?” Answering that question this morning, I find myself saying, “Stay on the sidelines.” So, based on that answer, we will move to the sidelines – almost…
The SPX is currently about 1238 after reaching a high just above 1239. I think that 1240 will be tough for the market to vault easily. So, I’m going to suggest exiting the position in the following manner: TOT daily traders are advised to cover the short at SPX 1240.60 stop or at SPX 1231.60 limit, whichever comes first. In the event that neither level is reached prior to the close, then cover the position on the close and go into the weekend flat.
Have a great weekend, thanks for the opportunity to be of service, and I will update again six hours before the start of Monday’s session – or sooner if circumstances warrant.
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