The SPX advanced .36 point yesterday to close at 1342.90. TOT daily traders were 300% short for the session.
The bond model remains neutral, and the gold model remains bearish.
The super long term perspective for the stock market remains bearish.
For the time being, both the long-term model (a six month perspective) and the short term model (a one month perspective) remain neutral. However, there is a strong possibility of improvement in both in the very near future. It’s starting to look more probable that this still-young bear market is ready for a rally.
On yesterday’s hotline, I said “a modest selloff is likely,” and that’s what we had yesterday for part of the session. We also had a modest advance for part of the session. Indeed, we had both of them twice! So it should come as no surprise when I advise you that the daily model is neutral today, reflecting a balance between bullish and bearish forces. My best estimate is that we’ll see the market open slightly higher, then sell off, and then build some strength later in the day. But that’s in a news neutral environment, and with the model being neutral, any unexpected news will certainly have its effect.
TOT daily traders come into today’s session 300% short. Lower your stop a little to SPX 1354. If the SPX declines to 1334, lower your stop again to 1344, and if it declines to 1324, take your profit. If still short on the close, cover your position and go overnight flat. There’s a pretty good chance that the daily model will be bullish tomorrow, and I wouldn’t want to carry a short position overnight.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6408.66 cumulative SPX points, compared to a gain of 883.97 points in the index itself over the same period.
Thanks for calling, and I’ll speak with you again in 24 hours.