The SPX advanced 5.98 points yesterday to close at 896.14. TOT daily traders came into the session 200% short. At 1:58 pm Eastern time, I issued a special intraday hotline lowering our stop to SPX 881, and at 2:13 pm that level was breached, locking in our profit.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7193.06 cumulative SPX points compared to a gain of 437.21 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish.
The long term model remains bullish, and the short term model remains neutral.
The market staged a decent comeback in the afternoon yesterday for the second consecutive day. Bullishly, the advance/decline ratio was good and so was up/down volume, but there was no spark. Of the ten most active NYSE issues not a single one was up more than a point. Virtually the entire strength to the rally was in the semiconductor and related stocks, and there was significant negative divergence on my intraday model during the last hour of trading.
The daily model is modestly bearish today. TOT daily traders should go 200% short at SPX 906 limit or 896 stop, whichever comes first. Use a 15 point protective buy stop on the position. If the SPX declines 15 points from your shorting point, lower the stop to a breakeven. If not stopped out, carry the position overnight and into tomorrow.
Thanks for the opportunity to be of service to you, and I’ll email you again six hours before the start of tomorrow’s trading session – or sooner 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.