The S&P 500 (SPX) advanced 4.38 points yesterday to close at 1210.96, consistent with my forecast of a “very minor advance (for the) day.” TOT daily traders were on the sidelines for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8574.55 cumulative SPX points, compared to a gain of 752.03 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish, and it’s unlikely anything will change that for several years.
Both the long and short term models remain bearish.
The advance yesterday was attributed by most commentators to strength in the bond market. This was not surprising as I had said, yesterday, “my bond model has just flashed a solid ‘buy signal’ and I think ‘long bonds’ is the best play for the short term.”
The directional component of the daily model is bearish today, but the risk component is high. Officially, we will stand aside. Unofficially, sophisticated traders might wish to consider MODEST-SIZED short positions – but I still think the best percentage play is in the long bond.
Have a great weekend.
Thanks for the opportunity to be of service, and I’ll email you again in 72 hours.
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