This is Turov on Timing for Monday, October 15, 2007.
Theta Investment Research is an independent research organization that evaluates real-money investment management performance of virtually every mutual fund money manager in America. Please see the attachment to this TOT.
The SPX advanced 7.39 points Friday to close at 1561.80. TOT daily traders went 400% long at SPX 1555.41 and have held the position over the weekend and into today.
TOT daily traders have outperformed the SPX in 11 of the past 15 weeks.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 9922.72 cumulative SPX points, compared to a gain of 1102.87 points in the index itself over the same period. That’s a ratio of 9.00 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 has downticked from bullish to bearish. REPEATING, THE SHORT TERM MODEL IS NOW BEARISH. Despite the SPX being only 38 points away from 1600 versus 62 points away from 1500, I think we will re-visit 1500 before seeing 1600.
I expect the market to continue slightly higher this morning and then move lower for the balance of the session. TOT daily traders come into today’s session 400% long. Raise your stop to a very tight SPX 1560. If the SPX rallies to 1564, raise your stop to SPX 1562. And for each additional 2 point advance, raise your stop by an equivalent 2 points. If not stopped out prior to 10:45 a.m. Eastern time, take your profit at that time. FURTHERMORE, when you liquidate your long position, simultaneously go 300% short at the same price. On the short position, use a 10 point protective buy stop. If not stopped out of the short position, carry it overnight and into tomorrow.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours.
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