The SPX declined 8.27 points Friday to close at 1318.55. TOT daily traders went 300% long at SPX 1315 on Thursday and were stopped out at the same level on Friday. We are currently on the sidelines.
The bond model remains neutral, and the gold model remains bearish.
The super long term perspective for the stock market remains bearish.
The long-term model (a six month perspective) remains neutral, and the short term model (a one month perspective) remains bearish.
The directional component of the daily model is slightly bullish today. However the risk component is excessively high considering the modest level of daily model bullishness. We will stay on the sidelines today and wait for a better risk to opportunity ratio before risking capital again.
By the way, I will be appearing on the live internet TV show jagfn from noon to 1pm Eastern time today. To access it, go to www.jagfn.com
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6409.71 cumulative SPX points, compared to a gain of 859.62 points in the index itself over the same period.
Thanks for calling, and I’ll speak with you again in 24 hours.