This is Turov on Timing for Thursday, May 7, 2009.
The Standard & Poor’s 500 Index (“SPX”) advanced 15.73 points yesterday to close at 919.53. 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 10978.16 cumulative SPX points, compared to a gain of 460.60 points in the index itself over the same period. That’s a ratio of 23.83 to 1.
The super long term perspective for the stock market remains bearish (as it has been since January 2000). I expect that after a solid cyclical advance later this year, the bear market will resume in earnest in 2010, leading to a possible end to that decade long perspective at lower prices next year. But we’re certainly not at that point yet.
The Intermediate Term Model remains bearish, although after an expected May decline, a resumption of the recent advance appears likely.
After the close yesterday, Cisco came out with better than expected earnings, and the stock soared. Hopefully, that strength will continue until the opening, providing TOT daily traders with a high-priced selling opportunity, as the daily model is solidly bearish today. TOT daily traders are advised to go 400% short at SPX 919 stop or SPX 927 limit, whichever comes first. If and when you go short, use a 2% protective buy stop. If not stopped out, carry the 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.
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