The SPX advanced .51 points yesterday to close at 1109.89. TOT daily traders went an unleveraged 100% short at SPX 1106 and have held the position overnight and into today.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain bullish.
As has been the case recently, news reigned supreme. The market moved up while Chairman Greenspan’s Congressional testimony was favorably received, and it then moved down on negative news from Cisco.
The daily model is again slightly bearish today, even though today is the last day of the month, normally a seasonally favorable day. TOT daily traders come into today’s session 100% short. Maintain your protective buy stop at SPX 1116. If not stopped out, carry your position overnight and into tomorrow. However, please note that it is impossible for the daily model to be bearish tomorrow – it will either be neutral or bullish – and that we will tighten our stop significantly tomorrow if we do end up carrying the position overnight.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6652.91 cumulative SPX points compared to a gain of 650.92 points in the index itself over the same period.
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