This is Turov on Timing for Friday, February 29, 2008.
Which of these three statements is truthful?
1. “Read my lips; no new taxes”. – George Bush the elder.
2. “Saddam has weapons of mass destruction.” – George Bush the younger (early days).
3. “The US is not headed into a recession.” – George Bush the younger (yesterday).
Answer: All three are blatant lies, right up there with the best liar of all, Lyndon Johnson. Oh, all right. Maybe the third statement isn’t a lie – maybe we’re ALREADY in a recession!
The SPX declined 12.34 points yesterday to close at 1367.68. TOT daily traders were on the sidelines for the session.
TOT daily traders have outperformed the SPX in 21 of the past 34 weeks.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 10032.81 cumulative SPX points, compared to a gain of 908.75 points in the index itself over the same period. That’s a ratio of 11.04 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. Despite coming into a period of normally favorable month-change seasonality, I expect the next week to show a 2% to 4% decline.
The daily model is bearish today. TOT daily traders are advised to go 300% short at SPX 1365 stop or at SPX 1371 limit, whichever comes first. If you go short, use a 1% cash management protective buy stop. If not stopped out, carry your position over the weekend and into Monday.
And with that, 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 © 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.