This is Turov on Timing for Friday, February 22, 2008.
The SPX declined 17.50 points yesterday to close at 1342.53. TOT daily traders went 200% long at SPX 1362.21 and then ran for the hills with a miniscule loss by selling out at SPX 1361 after the SPX had rallied to 1366. We are currently flat.
TOT daily traders have outperformed the SPX in 21 of the past 33 weeks.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 10042.81 cumulative SPX points, compared to a gain of 883.60 points in the index itself over the same period. That’s a ratio of 11.37 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.
The intermediate term model remains bearish, although it’s a weak signal. The market continues to respond to the news of the moment more than usual as it has very little internal direction of its own.
On yesterday’s hotline I said, “I expect the market to show strength in the morning and then sell off as the day progresses,” and of course, that’s EXACTLY what happened.
Today should see a partial reversal of yesterday’s decline, but the risk remains high. TOT daily traders are advised to again go 200% long. Use a 1344 buy stop as your entry level, and once again, use a tight 5 point protective sell stop. I’ll have an intraday follow-up update at 11 am.
Thanks for the opportunity to be of service, and I’ll email you again in a few hours.
Turov on Timing is Copyright © 2008 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.