This is an 10:52 a.m. update of Turov on Timing for Tuesday, January 19, 2010.
The market is higher today, no doubt on Republican hopes that they can wrest the Senate seat in Massachusetts from the Democrats, as late polls indicate that race in a virtual dead heat, but with Republican momentum. That’s probably causing a fair amount of short covering, prior to tonight’s results.
On a non-political level, my NASDAQ work for today indicated a high probability that whatever the market did in the first 75 minutes would be reversed during the balance of the day. So a down morning would likely be followed by an up afternoon, and vice versa.
With NASDAQ being up in the morning, the odds favor a decline for the balance of the day. Therefore, with TOT daily traders being 400% short from SPX 1146.74 (currently about unchanged from that level), I recommend maintaining the SPX 1151 stop. However, regardless of whether the afternoon declines or not, risk of an upside gap tomorrow morning is higher than I would like. Therefore, if not stopped out prior to the close, cover the short on the close and go overnight flat.
Thanks for the opportunity to be of service, and I’ll email you again six hours before the start of tomorrow’s trading session – 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.