The SPX declined 1.21 point Thursday to close at 1139.32. TOT daily traders went 400% long on the opening and were stopped out later in the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8365.96 cumulative SPX points compared to a gain of 680.39 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish, and it’s unlikely anything will change that for several years.
The long model has downticked from bullish to neutral, and the short term model has downticked from bullish to bearish. Repeating, the long term model is now neutral, and the short term model is bearish.
To the casual observer, Thursday’s session was unremarkable. However, in an important way, it was quite remarkable – remarkably bad. While “officially” the cash S&P opened unchanged, the S&P futures gap opened strongly, and the combination of good news plus a good model reading made it likely that after the “de rigeur” pullback, the market should have vaulted upwards. But it didn’t. Instead, it meandered lower for most of the session, then sold off a bit more sharply, and then had an anemic rally on position squaring near the close. If one can make a conclusion about he market based on one day’s performance (and, in reality, one cannot), then one has to be considerably less bullish after this past Thursday.
The daily model is modestly bearish today. TOT daily traders are advised to go 200% short at SPX 1142 limit or at SPX 1137.50 stop, whichever comes first. If you go short, use a 10 point protective buy stop. If not stopped out, AND if the SPX is closing down on the day, carry your position overnight and into tomorrow. If the SPX is closing up on the day, then liquidate your position on the close and go overnight flat.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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