The SPX advanced 0.84 points Friday to close at SPX 1201.59. TOT daily traders took a 3.79 point scalping loss on 3 units as favorable news in the drug sector perked up the Dow. However, despite the day’s loss, the week just ended was our daily model recommendations’ fourth consecutive winning week, and our fifth consecutive week of outperforming the SPX.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8499.94 cumulative SPX points compared to a gain of 742.66 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 bullish.
Somewhat to my surprise, the daily model is quite bullish today. I had expected it to be neutral. TOT daily traders are advised to go 400% long at SPX 1203.80 stop or at SPX 1200.40 limit, whichever comes first. If you go long, use a 10 point protective sell stop on the position. If not stopped out, carry your position overnight and into tomorrow, when the daily model is almost certain to be bullish again.
There are so very many things wrong with the economy, with the housing market, and with our international commitments that I find it almost painful to go long. Yet, I learned a long time ago that the models do a lot better job at predicting the market than do my emotions, and in the absence of compelling reasons to override my models – which are NOT currently present – the odds dramatically favor following those models.
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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