The SPX declined 21.79 points yesterday to close at 776.76. TOT daily traders went 200% short at SPX 797 and have held the position overnight and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7169.69 cumulative SPX points compared to a gain of 317.83 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain bullish, and there are strong indications that this first leg of the bear market is close to ending.
On yesterday’s hotline I said, “If… the market gets smashed today or tomorrow, it’s likely to be the low for the year.” Well, it got smashed – but yet, it didn’t. While breadth was a lousy 6:1 negative on the NYSE, it was almost even on NASDAQ. While the Dow Jones utility index fell a whopping 9.6% yesterday, there was no real panic and no mass dumping of stocks – just a steady severe erosion which is typical of bear markets – but not bear market nadirs.
However, there is a very powerful indicator that I use which doesn’t come into play often – but it will on Friday. For a variety of complex reasons – unlike any indicator you’ve ever read about – there’s a very strong probability that Friday will be a dramatic day, and that its direction will be the same as today’s. That means that if we have a smash today that stays down, Friday could be horrific. On the other hand, if we have a smash today that reverses, Friday could be a huge up day. With apologies, I can’t divulge what this indicator is – except to say that it is a part of the daily model that doesn’t often come into play – but that its track record in calling this pattern is better than 80%, and the magnitude of its correct calls is awesome. Obviously, unexpected news will always have an impact, there are no guarantees in the market ever, but the probabilities are high that this unique component indicator will help us make some money tomorrow.
For today, TOT daily traders come into the session 200% short. Maintain your position, but lower your stop to SPX 790. If the market declines to 770, lower your stop to 780, and for each additional 10 point decline, lower your stop by an additional 10 points. If we get stopped out or if the SPX declines to 750, I’ll have an intraday update within 30 minutes of either event. Otherwise, hold your short overnight and into tomorrow.
Thanks for the opportunity to be of service to you, and I’ll email you again in 24 hours – or less if circumstances warrant.
Turov on Timing is Copyright (c) 2002 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the publisher.