This is a 10:50 update of Turov on Timing for Monday, January 11, 2010.
On the overnight hotline, I said, “The Monday before options expiration has a bullish bias to it, and futures are up about ½ point overnight. [Ed.: I meant to say ½ percentage point, inasmuch as they were up about 5 points at the time.] However, I envision some profit taking after an expected gap opening, prior to a move to higher prices later in the day.”
Well, that’s precisely what we’ve had so far, and it’s especially visible in a chart of the NASDAQ-100 Index which looks like a sharp cascade. The last time the NDX.X fell so sharply in the first hour of trading was December 17, and on that day, the Index meandered flatly until the final hour when it sold off even further.
The statistics say that the market should bounce back this afternoon, but I really don’t like the cascading nature of the NDX decline, which often is a leading Index. I’m therefore going to recommend remaining on the sidelines for the balance of the session, awaiting a better opportunity:risk situation in the days ahead.
Thanks for the opportunity to be of service, and I’ll email you again in about 15 hours – or sooner if circumstances warrant.
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.