This is a 3:20 p.m. intraday update of Turov on Timing for Monday, April 28, 2003.
The market has retraced almost all of the decline from last Thursday and Friday, and is now getting close to the previously mentioned 920 resistance level. That’s unfortunate because, as I said on the regular hotline message, “if the market can avoid selling off more than about a percentage point (today), AND if it can show some stability and strength in the late afternoon, a powerful rally may be close.” What’s unfortunate is that, because of all the positive news today, that rally has probably begun early.
I dislike buying into strength, and I especially dislike doing it below major resistance. Yet the daily model is almost certainly going to be bullish tomorrow. Will it run into resistance and stall? Or will some bit of unexpected good news occur which will enable it to catapult higher – a breakaway gap, if you will? Obviously, no one knows.
I’m going to take a midway stance, in anticipation of the daily model calling for a 400% long invested position tomorrow. TOT daily traders are therefore advised to go 200% long at SPX 917.50 stop or at SPX 913 limit, whichever comes first. Use a somewhat distant SPX 900 sell stop on the position. If not stopped out, carry the position overnight and into tomorrow.
Thanks for the opportunity to be of service, and I’ll email you again in at the regular time.
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