This is Turov on Timing for Friday, June 23, 2006
The SPX declined 6.6 points yesterday to close at 1245.60. 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 8887.96 cumulative SPX points, compared to a gain of 786.67 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.
Both the long and short term models remain bearish.
Despite numerous oscillator indicators being clearly oversold, the bigger picture indicates that they could get considerably more oversold before the short term selling is done. Indeed, my favorite “panic” oscillator is nowhere close to the levels reached at prior significant bottoms, and until it is reached, I consider this nascent second-leg bear market to be just a baby.
The daily model is bearish today. TOT daily traders are advised to go 400% short at SPX 1245 stop. If you go short, use a protective buy stop at SPX 1253. On the downside, if the SPX declines to 1235, lower your stop to SPX 1240, and for each additional 5 point decline, lower your stop by an equivalent 5 points. 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 (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.