The SPX advanced 3.90 points yesterday to close at 1364.30. TOT daily traders went 400% long at SPX 1364 and have carried the position overnight and into today.
The bond model remains neutral, and the gold model remains bearish.
The super long term perspective for the stock market remains bearish.
However, both the long and short term models remain bullish.
Yesterday’s action was poor. The market had numerous opportunities to rally, and it failed at each attempt. It’s probable that a day or two of softness will be needed prior to further upside gains.
The daily model is neutral today, reflecting a balance between bullish and bearish forces. Separate from the model’s actual reading, my sense is that unless Chairman Greenspan says something clearly bullish, the market will likely move lower today. TOT daily traders went 400% long yesterday at SPX 1364. We’re just a tad above that level, but I’d use a sell stop at that same level, thereby exiting at the first sign of weakness. In the unlikely event that we’re not stopped out, take your profit on any rally to SPX 1372, which seems like the most the market might be able to muster today. In the even more unlikely event that neither level is reached, carry your position overnight and into tomorrow. I expect to see the SPX attack the 1400 level in the near future — just not this week.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6376.56 cumulative SPX points, compared to a gain of 905.37 points in the index itself over the same period.
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