The SPX advanced 7.54 points Friday to close at 1215.68. TOT daily traders were on the sidelines for the session.
The super long term perspective for the stock market remains bearish. However, both the long and short term models remain bullish.
In the absence of unexpected news, today should see the market trade in a fairly narrow range, most likely between about 1211 on the downside and 1221 on the upside. TOT daily traders should go 100% long at SPX 1211. We’re going to risk 10 points to make 10 points, but the odds of a 10 point rally from 1211 to 1221 are greater than the odds of a 10 point decline. So, if you go long at 1211, liquidate your position at SPX 1201 stop or 1221 limit, whichever comes first. However, please note: If the SPX hits 1221 before it trades at 1211, cancel your order. I would not want to buy into a 10 point decline from the 1221 level; I’d only want to go long if 1211 is reached before 1221. If you go long and are still long on the close, carry your position overnight and into Tuesday.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6445.75 cumulative SPX points compared to a gain of 756.75 points in the index itself over the same period.
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