This is Turov on Timing for Friday, September 8, 2006.
The SPX declined 6.24 points yesterday to close at 1294.02. TOT daily traders went 300% short at SPX 1298 and have held the position overnight and into today.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8963.62 cumulative SPX points, compared to a gain of 835.09 points in the index itself over the same period. That’s a ratio of 10.73 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 long term model remains neutral, and the short term model remains bearish.
On CNBC late yesterday, correspondent, Bob Pisani, said that it was a good sign that there was not very much volume on the selloff Wednesday and Thursday. As I said at my January seminar, the number one reason people lose money in the market is the media. The truth is that if there were heavy volume, we would be much more likely to be at or close to a good buying point than if there were light volume. In general, heavy volume is bullish, whether it is up volume or down volume, and light volume is bearish.
TOT daily traders come into today’s session 300% short. After two sharp down days, expect a brief upside pop in the morning, but after that, and in the absence of positive news, the market should decline again. Use a protective buy stop on the position at SPX 1303. If we are stopped out, I will have an intraday update within ½ hour. If not stopped out, carry the position over the weekend and into Monday. And with that in mind, have a great weekend;
Thanks for the opportunity to be of service, and I’ll email you again in 72 hours – or sooner if circumstances warrant.
Turov on Timing is Copyright © 2006 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.