This is a 10:00 a.m. update of Turov on Timing for Tuesday, November 23, 2010.
After I sent out the 9:00 message, I received the following email from a subscriber:
“I think today’s weakness is just as much about the European sovereign debt situation as it is Korea. Yield and CDS spreads blowing out again. Spain spreads at new high.”
“You are probably right but Korea is the headline story, and markets tend to trade on emotions more than reason. In the long term, unless Korea becomes a full-fledge fight (unlikely), the PIGS are far more important, but for TODAY, I think Korea is the primary story. Of course, there’s no way of knowing for sure.”
I also received the following email from a subscriber:
“What’s the one thing a strong president would/should do? Mobilize? Fire back? Condemn in strong address to nation and world?”
“I strongly disapprove of the entire US policy of “restrained response” and long term involvement. I prefer a massive response, followed by a warning that we’ll do it again if you threaten us. We should have done this in Iraq and Afghanistan instead of getting bogged down there. As for Korea, that’s somewhat different since we are strong allies with South Korea — and we need to have a unified response. I would certainly want to make the strongest response that South Korea can live with.”
So what to do now?
Well, when I issued the 9:00 update and said I’d update again at 10:00, I really didn’t expect much to happen in that hour. I primarily wanted some time to think about the situation. Bottom line: We simply don’t know what the news is going to be for the balance of the day, either as relates to Korea or the PIGS (Portugal, Ireland, Greece, Spain). I would be comfortable standing aside and letting the dust settle IF we weren’t right at that significant 1175-1180 area of significant support.
The SPX is currently about 1180. TOT daily traders are advised to go 200% long at SPX 1178 limit, or at SPX 1182 stop, whichever comes first. Once long, use a tight 5 point protective sell stop. I’ll update again in an hour.
Thanks for the opportunity to be of service, and I’ll email you again at 11.
Turov on Timing is Copyright © 2010 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc.