This is Turov on Timing for Friday, September 25, 2009.
For the second consecutive day, the SPX lost more than 10 points, and for the second consecutive day, TOT daily traders were on the sidelines.
After the close yesterday, bad news from Research in Motion (RIMM) hit the stock hard and dragged the NASDAQ and S&P futures lower along with it. But later trading overnight recaptured some of the loss.
Expect the market to bounce back in the early going, but it’s problematic whether that strength can last past the first hour or so. TOT daily traders are advised to go 300% long at SPX 1052 stop. If the SPX declines first to SPX 1048, lower your stop to SPX 1050. And for each additional 2 point decline, lower your buy stop by an equivalent 2 points. If you have not gone long by 10:00, cancel the recommendation. If you do go long, use a 10 point protective sell stop until 10:45 a.m. At that time, if the SPX is more than 2 points above the extant stop, raise the sell stop to 2 points below the 10:45 price. And for each additional 2 point advance, raise the sell stop by an equivalent 2 points. If still long on the close, liquidate the position on the close and go into the weekend flat.
And with that in mind, 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.
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