This is Turov on Timing for Friday, January 5, 2007.
The SPX advanced 1.74 points yesterday to close at 1418.34. 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 8827.50 cumulative SPX points, compared to a gain of 959.41 points in the index itself over the same period. That’s a ratio of 9.20 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 bullish.
The stock market continues to bounce about on every piece of news, continually demonstrating that it has little independent internal direction. That having been said, and despite the continuing bullish reading to the intermediate term model, the odds favor some modest selling over the next day or two, perhaps as low as SPX 1400, but probably not any further than that – sans news, of course.
TOT daily traders are advised to go 200% short at SPX 1415 stop or at SPX 1423 limit, whichever comes first. If you go short, use a ½ percent cash management stop on your position. If not stopped out, carry your position over the weekend and into Monday.
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.