The SPX advanced 11.17 points Friday to close at SPX 1211.37. TOT daily traders went 400% long at SPX 1201 and have held the position over the weekend and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8495.42 cumulative SPX points compared to a gain of 752.44 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.
Both the long and short term models remain bullish. However, after this current rally has run its course, I expect them to reverse to at least neutral, if not outright bearish sometime later this week. But not yet.
The daily model is again bullish today. TOT daily traders come into today’s session 400% long. Maintain your protective sell stop at SPX 1196. If not stopped out, carry your position overnight and into tomorrow. If the SPX advances today, the likelihood is that it will move yet higher tomorrow, possibly to a 2005 high (retrospectively from December 31, 2005).
There was an interesting story on Saturday which, so far, hasn’t gotten much press and which has potential bullish US stock market implications: To quote: “Guo Shuqing, head of the State Administration of Foreign Exchange, said China would support insurance companies, which took in 431.8 billion yuan ($52.2 billion) in premiums last year, to invest in stocks overseas, potentially increasing the outflow of currency to balance huge inflows.” If China began to invest their huge supply of dollars here in the US, it could significantly change the supply demand equation for stocks. My personal opinion is that they won’t invest significantly here – but it’s worth watching.
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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