This is Turov on Timing for Friday, August 25, 2006.
The SPX advanced 3.07 points yesterday to close at 1296.06. TOT daily traders were on the sidelines for the session.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8962.04 cumulative SPX points, compared to a gain of 837.13 points in the index itself over the same period. That’s a ratio of 10.71 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several years.
Both the long and short term models remain neutral.
The market has the POTENTIAL for a serious selloff today if it gets an appropriate news catalyst, as the daily model is quite bearish. TOT daily traders are advised to go 400% short at SPX 1295 stop or at SPX 1299 limit, whichever comes first. If you go short and the SPX rises to 1304, I’ll issue an intraday update within ½ hour, probably sooner. Otherwise, maintain your short position without an INTRADAY stop.
Interestingly enough, whatever direction the market ends with today is likely to be reversed on Monday. Please note that the key word in that sentence is “direction”, not “magnitude”. So, if you go short and the SPX is down on the day, cover your short on the close. If you go short and the SPX is up on the day AND is CLOSING at or above 1304, then cover the position on the close. If you go short and the SPX is up on the day AND is NOT CLOSING at or above 1304, then carry your position over the weekend and into Monday.
And with that in mind, 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.
Turov on Timing is Copyright © 2006 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.