This is Turov on Timing for Tuesday, February 26, 2008.
The SPX advanced 18.69 points yesterday to close at 1371.80. TOT daily traders were on the sidelines for the session.
TOT daily traders have outperformed the SPX in 21 of the past 34 weeks.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 10032.81 cumulative SPX points, compared to a gain of 912.87 points in the index itself over the same period. That’s a ratio of 10.99 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 intermediate term model remains bearish, although it’s a weak signal. The market continues to respond to the news of the moment more than usual as it has very little internal direction of its own. I expect the market to move up for another day or two and then get soft near the end of the month – contrary to “normal” seasonality.
The market opened strongly, as expected yesterday, then sold off into negative territory, then rallied, then sold off into negative territory, then rallied, then sold off into negative territory, then rallied, then sold off into negative territory, and then when it got the rating news it wanted, rallied with that news into the close – once again confirming what I’ve been saying for over a week now, that “the market continues to respond to the news of the moment more than usual as it has very little internal direction of its own.”
In the February 7 Turov on Timing, I said, “Expect to see the 1400 level challenged again this month.” That should happen by Wednesday. I expect to then see that challenge fail, and the market sell off again. But for today and tomorrow, albeit with continuing responsiveness to news, expect to see the market mount that challenge.
TOT daily traders are advised to go 300% long at SPX 1373 stop or at SPX 1363 limit, whichever comes first. If and when you go long, use a 1% cash management sell stop on your position. If not stopped out, carry your position overnight and into tomorrow.
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 © 2008 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.