This is Turov on Timing for Thursday, January 4, 2007.
The SPX declined 1.7 points yesterday to close at 1416.60. TOT daily traders were on the sidelines for the session.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8827.50 cumulative SPX points, compared to a gain of 959.37 points in the index itself over the same period. That’s a ratio of 9.20 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.
The intermediate term model remains bullish.
On yesterday’s hotline I said, “It is quite possible that all the day’s gains will occur within the first few minutes of today’s trading session as the cash index catches up with the futures,” and that’s close to what happened as the market sold off sharply from early morning highs. Actually, what the market showed yesterday is that it truly has no strong “mind of its own” and is being buffeted by news – good news to prop it up in the early going and the negative Fed news to knock it down later on. This pattern will likely persist for at least a few days, and trading in this environment will likely prove rather hazardous. Continue to stand aside.
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.