This is Turov on Timing for Monday December 24, 2007.
Primarily because of a huge upside gap opening on positive news, the SPX advanced 24.34 points Friday to close at 1484.46. It was the worst single day in the history of Turov on Timing as TOT daily traders were 300% short for the day. We have carried the position overnight and into today.
TOT daily traders have outperformed the SPX in 18 of the past 25 weeks.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 10268.55 cumulative SPX points, compared to a gain of 1025.53 points in the index itself over the same period. That’s a ratio of 10.01 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 bearish. I think we have begun the second leg down of the 2000-2015? primary bear market.
Santa Claus notwithstanding, the daily model is bearish today. TOT daily traders come into today’s session 300% short. Maintain the position but use a disaster-only protective buy stop at SPX 1505. If the SPX declines to 1470, lower the stop to SPX 1480, and for each additional 5 point decline, lower the stop by an equivalent 5 points. If still short on the close (which will be at 1:00 Eastern time today!!!), cover your short on the close and simultaneously go 200% long. If stopped out prior to the close, go 200% long on the close. Either way, carry that 200% long position over Christmas as we should see strength Wednesday morning.
Have a Merry Christmas (or just a pleasant day off, depending on your religious persuasion), thanks for the opportunity to be of service, and I’ll email you again six hours before the start of Wednesday’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.