This is Turov on Timing for Thursday, January 25, 2007.
The SPX advanced 12.14 points yesterday to close at 1440.13. TOT daily traders went 100% long shortly after the opening and scalped a 10 point profit on the position. We are currently flat.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8893.50 cumulative SPX points, compared to a gain of 981.20 points in the index itself over the same period. That’s a ratio of 9.06 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. I will discuss this “perspective” further in the February monthly issue of TOT.
The intermediate term model remains neutral.
The daily model is slightly bearish today, and after an early morning pop in response to yesterday’s after-the-close positive earnings news, the market is likely to be hit with some profit taking. TOT daily traders are advised to go 100% short at SPX 1438.50 stop or at SPX 1444.50 limit, whichever comes first. A 100% position is the smallest we ever take, and traders are advised to not overtrade, as today’s bearish reading is unimpressive. Use a 10 point protective buy stop on your position, and if the SPX declines 10 points from your short sale level, take your profit. So we’re risking 10 points to make 10 points, but the odds are slightly in favor of a market decline today rather than an advance – just the opposite from yesterday. If not stopped out, carry your position overnight and into tomorrow.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
Turov on Timing is Copyright © 2007 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.