This is Turov on Timing for Thursday, June 1, 2006.
The SPX advanced 10.25 points yesterday to close at 1270.09, reversing about half of Tuesday’s decline. I had reported yesterday “the directional component of the daily model is quite bullish, indicating a bounce-back is likely,” and so the rally did not come as a surprise. However, because of the high number on the daily model’s risk component, TOT daily traders “officially” stayed on the sidelines.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8847.92 cumulative SPX points, compared to a gain of 811.16 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.
Yesterday’s action was impressive, both in terms of volume and in the ability of the market to rally in the late going. A continuation of the “bounce-back” is likely. Indeed, the long term model has upticked from bearish to neutral, and the short term model has upticked all the way from bearish to bullish. REPEATING, THE LONG TERM MODEL IS NOW NEUTRAL, AND THE SHORT TERM MODEL IS NOW BULLISH.
Before continuing, I must add this: I still believe that we are at the early stages of the second down leg of the bear market that began in 2000. However, I will not allow my beliefs to stand in the way of following my indicators (which are much smarter than I am)!
The daily model is bullish today. TOT daily traders are advised to go 300% long at SPX 1271 stop or at SPX 1268 limit, whichever comes first. Once you go long, use a 5 point protective stop on one unit, a 10 point protective stop on the second unit, and a 15 point protective stop on the third unit. 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 (c) 2006 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.