This is Turov on Timing for Thursday, September 28, 2006.
The SPX advanced ¼ point yesterday to close at 1336.59. 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 8928.68 cumulative SPX points, compared to a gain of 877.66 points in the index itself over the same period. That’s a ratio of 10.17 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several years.
The long term model remains neutral, and the short term model remains bearish.
Although I loath buying into strength or selling into weakness, the daily model is solidly bullish today. TOT daily traders are advised to go 400% long at SPX 1337.50 stop or at SPX 1331.50 limit, whichever comes first. If you go long, use a fairly tight 6 point protective sell stop. If the SPX rises by 6 points, raise your stop to a breakeven, and for each additional 6 points, raise your stop by an equivalent 6 points. If still long on the close, carry your position overnight and into Friday.
It is likely that the directional component of the daily model will be bullish again Friday, but likely of less magnitude than today, and it is also likely that the risk component of the model will be higher tomorrow than today. So even if we carry the position overnight, we will likely tighten the stop further on Friday.
Thanks for the opportunity to be of service, and I’ll email you again six hours before the start of tomorrow’s trading session.
Turov on Timing is Copyright © 2006 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc.