This is a 10:50 update of Turov on Timing for Wednesday, December 8, 2010.
TOT daily traders went 300% short at SPX 1226 earlier this morning. The SPX is currently about 1221. It’s a good start.
Lower your protective buy stop to SPX 1231. If the SPX declines to 1216, lower your stop again to a 1226 breakeven, and for each subsequent 5 point decline, lower your stop by an equivalent 5 points. In the unlikely event that the SPX declines all the way to 1206, take your profit. If still short as we approach the close and if the position is profitable, take the profit. If still short as we approach the close and if the position is unprofitable, keep the position overnight and into tomorrow. I know this is contrary to “conventional wisdom”; good — “conventional wisdom” is usually wrong.
Thanks for the opportunity to be of service, and I’ll email you again in about 15 hours.
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