The SPX advanced 8.56 points yesterday to close at 890.71, reversing Tuesday’s loss. TOT daily traders went short in the morning and covered that short at a breakeven.
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 431.78 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. Despite all the overwhelming bullishness of October month end seasonality and the pre-election favorable seasonality, the short term model can still not do better than a neutral reading. That, in and of itself, is a strong indication that this is just a bear market rally, and not the start of any new bull market.
The directional component of the daily model is bullish today, but risk is extremely high. In this case, that means that the market is extremely susceptible to negative news, and if any were to occur, the market could get hit hard. The benefits of going long are simply not worth the risk. For the time being, at least, we will stand aside.
Thanks for the opportunity to be of service to you, and I’ll email you again in 24 hours – or sooner if conditions merit.
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