The SPX declined exactly 20 points yesterday to close at 827.91. TOT daily traders got nailed as we were stopped out of our long position.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7151.04 cumulative SPX points compared to a gain of 368.98 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.
The market was hurt by awful news yesterday from the California docks, Dow Chemical, Cisco Systems, the House of Representatives and from a clerical error from Bear Stearns that I’m sure will make the front page of the papers. So there were lots of reasons for the decline. Yet, the decline was disappointing.
After the close, Advanced Micro Devices came out with a serious earnings warning and was down 25%. Intel followed suit to a minor extent, and the S&P futures are down 5 points.
The daily model is bearish today. However, inasmuch as the long and short term models are bullish, and more importantly, because there was so much news that attributed to yesterday’s momentum reversal, I’m going to override the sell reading and instead recommend staying on the sidelines. In all probability, with references to Star Trek, it would be logical to go short today, but I’m just too human to do so.
Thanks for the opportunity to be of service to you, and I’ll email you again in 24 hours.
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