The SPX advanced 16.93 points yesterday to close at 885.23. TOT daily traders had a 10 point scalping loss on an unleveraged single unit.
For new subscribers especially, I want to emphasize that it is very important to not only follow the signals and the stops but the size of the recommended position as well. A 10 point loss on 1 unit, and a 10 point gain on 3 units averages out to a .750 batting average.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7484.80 cumulative SPX points compared to a gain of 426.30 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 neutral, and the short term model remains bullish – although not by much.
The probability is that the market will advance today. However, the risk to the downside in points is significantly greater than the potential upside gain. In such an environment, standing aside is wise.
In the absence of negative news, and with the short term model bullish, I’d expect to see the SPX reach at least 900 by the end of this shortened week (Friday, the market is closed). But, as I said, the downside risk is far greater than the upside potential. (Worded differently, a bearish bit of unexpected news will impact the market to the downside far more than an equivalently bullish bit of unexpected news.)
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours.
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