The S&P 500 (SPX) advanced 2.07 points yesterday to close at 1204.29. TOT daily traders came into the session 500% long and have held the position overnight and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8612.97 cumulative SPX points, compared to a gain of 745.36 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.
As was anticipated on yesterday’s hotline message, the risk component of the daily model is extremely high today, which would flip the overall model into “neutral” regardless of what the directional component is. What I did not expect is that the directional component itself is only able to manage a neutral rating. Furthermore, preliminary work indicates that it is rather unlikely that the daily model will be able to muster a bullish reading on Monday, regardless what the market does today. So, as was also indicated as likely on yesterday’s message, we will liquidate our position today.
TOT daily traders come into today’s session 500% long. Take your profit at SPX 1209.40 limit, or at SPX 1203.40 stop, whichever comes first. In the event that neither level is reached, take you profit on the close. Furthermore, in the event that both the NYSE advance/decline ratio AND the SPX are closing the session negative, TOT daily traders are advised to go 200% short on the close, with a strong possibility of increasing that short position on Monday. If both of those conditions are not met, then go into the weekend flat.
You can find the NYSE advance/decline ratio at: http://finance.yahoo.com/mo?u
Have a great weekend, thanks for the opportunity to be of service, and I’ll email you again six hours before the start of Monday’s session – or sooner if circumstances warrant.
Turov on Timing is Copyright (c) 2005 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.