This is Turov on Timing for Friday, May 13, 2011.
The SPX advanced 6.57 points yesterday to close at 1348.65. TOT daily traders were on the sidelines for the session.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 12365.29 cumulative SPX points, compared to a gain of 889.72 points in the index itself over the same period. That’s a ratio of 13.90 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000 after having been bullish from December 1974 until then). When the current cyclical bull market ends, expect another nasty crash to perhaps finally bring an end to the long term bear market that began in 2000.
The Intermediate Term Model remains bearish.
If – repeat “if” – the NASDAQ 100 is down on the day at 10:45 a.m., then the prognosis for both the NASDAQ and the SPX is somewhat bleak for the balance of the session. Therefore: If the NDX (the NASDAQ 100 cash index) is below 2407.89 at 10:45 (that’s the “open” on a one minute bar chart at 10:46), TOT daily traders are advised to go 400% short at the market. If the NDX is not below 2407.89, then stand aside.
If you go short, use a 1% protective buy stop on the position. If not stopped out, cover the short on the close and go into the weekend flat.
Have a great weekend, thanks for the opportunity to be of service, and I’ll update again about six hours before the start of Monday’s regular trading session.
Turov on Timing is Copyright © 2011 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.