This is Turov on Timing for Tuesday, December 5, 2006.
The SPX advanced 12.41 points yesterday to close at 1409.12. TOT daily traders were on the sidelines for the session. Bonds had a small advance.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8867.84 cumulative SPX points, compared to a gain of 950.19 points in the index itself over the same period. That’s a ratio of 9.33 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.
Both the long and short term models remain neutral.
Yesterday, I said, “there is a good chance we will see the daily model stay neutral for an unusually long time – perhaps as much as a week or two – while the excesses of the autumn rally are worked off,” and that is still the case. The odds are that the market will stay in a tight trading range for the early part of December, and the risk of trying to catch each short term advancing or declining blip simply is not worth it; the potential for whipsaws is just too great. Boring as it may be, continue to stand aside.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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.