The SPX declined 8.48 points yesterday to close at 1068.61. TOT daily traders were on the sidelines for the session.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain neutral.
On yesterday’s hotline I said, “the directional component of the daily model is slightly bearish today, and in the absence of news the market will likely drift lower.” That’s precisely what happened.
Today is options expiration, traditionally the most difficult day of the month to predict because of the unknown position squaring that will occur. Making the situation more uncertain is the report that just came out in the Washington Post that small numbers of US ground forces are now in Afghanistan. This follows an evening speech by Vice President Cheney in which he said that life in the United States “would never be the same” and that more attacks should be expected. We’ll stand aside again until at least we see what the weekend brings in the way of news, and we can see how options expiration plays out.
I do expect that we’ll see a big move before the end of the month, and I am hopeful that the daily model will be able to target it ahead of time. But for now, we’ll bide our time.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6562.95 cumulative SPX points compared to a gain of 609.68 points in the index itself over the same period.
Have a great weekend, Thanks for calling, and I’ll speak with you again in 72 hours.