This is a 10:38 intraday update of Turov on Timing for Monday, March 18, 2002. Sorry I’m 8 minutes late.
Futures opened 4.2 points higher this morning at 1171 and have barely budged. They’re currently at 1172. The futures trade at about a 2 point premium over cash.
There is a lot of resistance in the mid-1170’s, and the market doesn’t seem to have the power to break through without some additional retrenchment, the bullish directional signal notwithstanding. The current advance in the market may be all we can expect of the SPX today.
If the SPX – the cash index — retraces back to 1166, I recommend going 200% long. If you go long, use a 6 point protective stop on the downside, and a 6 point profit taking point on the upside. In other words, if 1166 is reached, risk 6 to make 6, but the odds of the “make” are greater than the odds of the risk. If still long on the close, carry your position overnight and into tomorrow.
Thanks for calling, and I’ll speak to you at the regular time tonight.