The S&P 500 (SPX) advanced 6 points Friday to close at 1216.96, somewhat surprising me, although it’s difficult to know how much of the day’s advance was simply a function of options and futures expiration. TOT daily traders were on the sidelines for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8574.55 cumulative SPX points, compared to a gain of 758.03 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 bearish.
The daily model is bearish today. TOT daily traders are advised to go 200% short at the market. Use a rather tight 7 point protective stop on the position. If not stopped out, carry your position overnight and into tomorrow.
Candidly, I’m surprised at the strength of the market recently, but at least, pleased that the risk component of the daily model has prevented us from excessive shorting. Nevertheless, the strength is irksome, and the market may have some surprises up its anthropomorphic sleeve that are difficult to perceive right now. We shall see.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours.
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