This is Turov on Timing for Friday, October 12, 2007.
The SPX declined 8.06 points yesterday to close at 1554.41. TOT daily traders took a nasty loss on 3 units.
TOT daily traders have outperformed the SPX in 11 of the past 14 weeks but are behind the eight ball so far this week.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 9897.16 cumulative SPX points, compared to a gain of 1095.48 points in the index itself over the same period. That’s a ratio of 9.03 to one.
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.
The intermediate term model remains bullish but deteriorating rapidly. I would not be surprised to see if flip to negative next week. But don’t jump the gun.
While it is certainly true that the market is overbought – very overbought in certain sectors – such overbought conditions can last longer than intuition would dictate – but generally not longer than statistical probabilities would dictate. The short term top of this rally is coming soon – but not just yet – in all probability!
The daily model is bullish today. TOT daily traders are advised to go 400% long at the market. Use a 10 point protective stop on the position. If not stopped out, carry the 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 six hours before the start of Monday’s session – or sooner if circumstances warrant.
Turov on Timing is Copyright © 2007 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.