This is a 3:40 p.m. intraday update of Turov on Timing for Wednesday, October 14, 2009.
The market is rallying (probably, in my opinion) simply because it didn’t sell off once Dow 10,000 was breached. That, most likely, brought in a whole bunch of covering short sellers.
TOT daily traders took a relatively small position (200%) short the SPX at 1083.50 earlier today. Our stop is at SPX 1095.50, and the SPX is currently about 1093. With only about 20 minutes of trading left, I’m going to take the rather unusual step of recommending that you cancel your stop and carry the position overnight and into tomorrow. My NASDAQ model is indicating about a 2:1 probability that the market will sell off during the first 75 minutes of trading, and I want to be in position for that.
Thanks for the opportunity to be of service, and I’ll email you again in about 10 hours.
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