The SPX declined 6.79 points yesterday to close at 1357.51. TOT daily traders closed our long position early in the day and moved to the sidelines.
The bond model remains neutral, and the gold model remains bearish.
The super long term perspective for the stock market remains bearish.
However, both the long and short term models remain bullish.
On yesterday’s hotline, I said, “It’s probable that a day or two of softness will be needed prior to further upside gains.” Well, one day down, one to go.
The daily model is bearish today. TOT daily traders should go 300% short at the market. Use a protective buy stop at SPX 1374. If the SPX declines to 1345, lower your stop to 1355, and for each 5 point decline from there, lower your stop by an equivalent 5 points. If still short on the close, cover your position. There’s a pretty good chance that the daily model will be bullish Monday, and I wouldn’t want to hold a short position over this weekend.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6375.36 cumulative SPX points, compared to a gain of 898.58 points in the index itself over the same period.
Have a great weekend Thanks for calling, and I’ll speak with you again in 72 hours.