The SPX declined 2.56 points Friday to close at 1354.95. TOT daily traders went short on the opening, and were stopped out near a breakeven late in the day. We are currently flat.
The bond model remains neutral, and the gold model remains bearish.
The super long term perspective for the stock market remains bearish.
However, both the long and short term models remain bullish.
I had expected the daily model to be bullish today. It is not. The daily model is bearish today. However, I do expect a buying opportunity later in the day. TOT daily traders should go 300% short at SPX 1354 stop. Use a very close protective buy stop at SPX 1357. If the SPX declines to 1345, lower your stop to 1355, and for each 5 point decline from there, lower your stop by an equivalent 5 points. I will have a special intraday hotline at 2:45 Eastern time, inasmuch as a very good buying opportunity may avail itself in the late afternoon. At a minimum, I will review the stop. At a maximum, I will advise reversing the position.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6382.89 cumulative SPX points, compared to a gain of 896.02 points in the index itself over the same period.
Thanks for calling, and I’ll speak with you again at 2:45 this afternoon.