The SPX advanced 10.87 points yesterday to close at 1265.65, almost precisely reversing Tuesday’s decline. TOT daily traders were on the sidelines for both sessions.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8540.29 cumulative SPX points, compared to a gain of 806.72 points in the index itself over the same period.
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 long term model remains neutral, and the short term model remains bullish.
The market advanced with about as little justification yesterday as it declined on Tuesday. Bulls and bears are playing a balanced tug of war with neither having a clear-cut upper hand.
Looking out over a several months horizon, I would love to short this market, as every fiber of my being tells me that it’s ready for a very big crack. BUT the weight of the evidence is not confirming my intuitive bearishness, and that evidence is clearly stating that the time to risk money to the short side has not yet arrived. Indeed, despite recent chart damage and momentum reversal, the odds somewhat favor the bullish case. But not enough to go long either…. Continue to stand aside, keeping your powder dry.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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