This is a special intraday update of Turov on Timing for Monday January 29, 2001 — 2:40 pm, EST.
As reported on the overnight hotline, the daily model was unexpectedly bearish today, but because risk of an upside reversal was high, we used a very tight stop on our short position, and indeed, have been stopped out with a small loss.
It’s been a curious session. The market has inched forward grudgingly with not a single serious computer buy program along the way. Indeed, each time the S&P has made a slightly higher high, it’s been met with some increased futures selling — yet not enough to qualify as a bearish indicator. Some of my daily model component directional indicators are very bullish; yet others are quite bearish. If the market can maintain it’s strength through the close, it has clear-cut bullish implications for tomorrow, and the daily model would almost certainly be bullish tomorrow. However, the advance today has been so unenthusiastic, that a selloff that would threaten such a higher close remains a real possibility. If we can rally past SPX 1365, the odds are that the advance can continue. Therefore, TOT daily traders are advised to go 300% long at SPX 1365.50 stop. If you go long, use a 10 point protective sell stop on the position. If not stopped out, carry the position overnight and into tomorrow.
Thanks for calling, and I’ll speak with you again in 12 hours.