This is Turov on Timing for Friday, June 16, 2006.
The SPX advanced a whopping 26.12 points yesterday to close at 1256.16. TOT daily traders went 200% long at SPX 1225 on Wednesday and have held the position since then and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8920.24 cumulative SPX points, compared to a gain of 797.23 points in the index itself over the same period.
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 long term model remains neutral, and the short term model remains bullish. Another few days like yesterday, however, and that will likely change, as this bull is skating on thin ice.
The up to down volume on the NYSE was a remarkable 20:1 yesterday, well above the supposedly significant 9:1 number. However, SINGLE 9:1 plus days have not acted as a significant harbinger of particularly strong markets in RECENT history (last ¼ century as compared with last ½ century). However, TWO 9:1 plus days within a three month period WITHOUT an intervening 9:1 minus day are VERY bullish – but that hasn’t happened.
The daily model is bullish today, and the market is likely to continue its advance today. TOT daily traders come into today’s session 200% long from SPX 1225. Raise your stop to SPX 1250, locking in a cumulative 50 point profit. If the SPX advances to 1260, raise your stop to SPX 1255, and for each additional 5 point advance, raise your stop by an equivalent 5 points. In the unlikely event that the SPX rallies all the way to 1279, take your profit AND go 200% short! If you go short, hold the position without a stop. If still long on the close, take your profit on the close and go into the weekend flat. If short on the close, carry the 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.
Turov on Timing is Copyright (c) 2006 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.