This is Turov on Timing for Friday, January 19, 2007.
The SPX declined 4.25 points yesterday to close at 1426.37. 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 8883.50 cumulative SPX points, compared to a gain of 967.44 points in the index itself over the same period. That’s a ratio of 9.18 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 neutral, although it is weakening.
The daily model is bearish today. TOT daily traders are advised to go 300% short at ANY decline below yesterday’s low of SPX 1424.21. If you go short, use a 10 point protective buy stop. If not stopped out AND if the SPX is closing down on the day, carry your position over the weekend and into Monday. If not stopped out AND if the SPX is closing up on the day, cover your short on the close and go into the weekend flat.
I do not currently believe we are about to see any significant meltdown, but a decline of 2% to 5% in the SPX would not surprise me. Any bigger decline than that prior to springtime would.
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 © 2007 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.