The SPX advanced 3.00 points yesterday to close at 980.59. TOT daily traders went 300% long at SPX 979 and have carried the position overnight and into today. Volume was again anemic, half of the 10 most active stocks on the NYSE were changed by less than a dime, and none were changed by more than 30 cents.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7810.46 cumulative SPX points compared to a gain of 521.66 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish, and it’s unlikely anything will change that for several years.
Both the long and short term models remain bearish.
The directional component of the daily model is bullish today, but the risk component is quite high, putting the overall model into neutral. TOT daily traders come into today’s session 300% long. Raise your stop to SPX 969. If not stopped out, carry your position overnight and into tomorrow.
The market is setting itself up for a major jump out of the recent trading range, but it is still not clear which way it will go. The long and short term models, which bearish, are just there by the thinnest of margins, and they could swing back to bullish with ease, if the right ingredients come together. I don’t think the economic news is going to write the script, but interest rates and political news might – but that’s just a seat of the pants opinion.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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