First, as I repeat on most Friday the 13ths, for the benefit of the superstitious, I have researched the day’s historical performance, and my research has shown that it does not behave substantively differently from Friday the 12ths or Friday the 14ths.
The SPX advanced 27.96 points yesterday to close at 1208.14. TOT daily traders went 300% short at SPX 1199 and were stopped out at 1209.
The super long term perspective for the stock market remains bearish. However, both the long and short term models remain bullish.
It’s somewhat surprising that the market was able to maintain its strength into the close of trading yesterday considering the number of internal divergences that I saw. Nevertheless, the market probably has the potential to move a bit higher in the very short term. However, the underpinnings are not strong. Yesterday’s NYSE volume was almost identical to Wednesday’s, and the NYSE advance/decline ratio of less than 3:2 was unimpressive. There are a couple of interesting possible scenarios which might offer trading opportunities for the nimble today, but for daily traders, staying on the sidelines until either a clearer bullish or bearish picture is painted makes sense.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6445.75 cumulative SPX points compared to a gain of 749.21 points in the index itself over the same period.
Have a great weekend. Thanks for calling, and I’ll speak with you in 72 hours.