The SPX advanced 0.67 point yesterday to close at 1128.84. TOT daily traders were on the sidelines for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8359.56 cumulative SPX points compared to a gain of 669.89 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish, and it’s unlikely anything will change that for several years.
The long model remains neutral, and the short term model remains bearish.
The daily model was right on the money yesterday, predicting a positive close but suggesting “more selling in the early going first.” Unfortunately, there was no positive divergence on the intraday model, so no good buying opportunity existed when the market was near its lows. Still, the sidelines in volatile but net-neutral trading sessions such as we had Wednesday and Thursday is not a bad place to be.
Even though much of the impact of options expiration has moved to earlier in the week, the makeup of the daily model requires higher opportunity to risk standards on options expiration, because of the higher risk of being stopped out on a whipsaw. Those standards are nowhere close to being met, as the directional component of the model is only slightly bearish today, and the risk component is quite high. Stand aside again, and start the weekend early.
Have a great weekend, thanks for the opportunity to be of service, and I’ll email you again in 72 hours – or sooner if circumstances warrant.
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