This is Turov on Timing for Friday, May 27, 2011.
A very good day for the home team as the SPX advanced 5.22 points yesterday to close at 1325.69. TOT daily traders went 300% long near the low of the session at SPX 1316 and took profits on the close.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 12491.56 cumulative SPX points, compared to a gain of 866.76 points in the index itself over the same period. That’s a ratio of 14.41 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 although I am not looking for any waterfall decline anytime soon. Noting that the daily model is bearish today, if we have a selloff of close to 2%, the Intermediate Term Model could easily improve. All indications are that the current decline will be small and short-lived.
As just indicated, the daily model is bearish today. TOT daily traders are advised to go 400% short at SPX 1325 stop or at the market at 9:40 a.m., whichever comes first. Once short, use a 1% protective buy stop. If not stopped out, cover the short on the close and go into the weekend flat. The probability (but not a certainty) is that the daily model will be bullish on Tuesday.
With thankful memories of those who died serving the interests of humanity and/or the United States, and with sorrowful memories of those who died serving the interests of politicians, I wish you a peaceful Memorial Day weekend.
Thanks for the opportunity to be of service, and I’ll email you again six hours before the start of Tuesday’s trading session – or sooner if circumstances warrant.
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.