This is Turov on Timing for Thursday, December 31, 2009.
THERE WILL BE A SPECIAL EMAILED REPORT NEW YEAR’S DAY MORNING. The report, in PDF format, will be titled, “The Incredible (yet True) Account of What Went Wrong in 2009 (And Why the Person Responsible Went to Jail).”
The Standard & Poor’s 500 Index (“SPX”) advanced 0.23 point yesterday to close at 1126.42. TOT daily traders were on the sidelines and missed absolutely nothing.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 11234.87 cumulative SPX points, compared to a gain of 667.49 points in the index itself over the same period. That’s a ratio of 16.83 to 1.
The super long term perspective for the stock market remains bearish (as it has been since January 2000). I expect that the bear market will resume in earnest in 2010, leading to a possible end to that decade long perspective at lower prices in 2011 or 2012. But we’re certainly not at that point yet.
The Intermediate Term Model remains bullish.
The early going today will likely be slightly higher, but nothing worth trading. However, after the first hour, expect lower prices into the close. TOT daily traders are advised to observe the SPX price at 10:30 and go 300% short on a stop 2 points below the next lower round lot price. So, for example, if the 10:30 price is SPX 1128.50, your initiation sell stop would be SPX 1126. If not executed by 11:00, and if the 11:00 price is at least 3 points above your stop, then raise your initiation sell stop to 2 points below the next lower 11:00 round lot price.
If and when you go short, use a 10 point protective buy stop on the position. If still short as we approach the close, cover your short on the close and go into the new year flat.
Thanks for the opportunity to be of service, and as I said at the beginning, I’ll email you again in 24 hours.
Turov on Timing is Copyright © 2009 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc.