This is Turov on Timing for Tuesday, January 5, 2010.
The Standard & Poor’s 500 Index (“SPX”) advanced 17.88 points yesterday to close at 1132.98. TOT daily traders went 200% short on a sharply higher opening in expectation that that strength would not hold, but it did – and we closed out the position on the close at a loss of just under 1%.
The super long term perspective for the stock market remains bearish (as it has been since January 2000). I expect that the bear market will resume in earnest later this year, leading to a possible end to that decade long perspective at lower prices in 2011 or 2012. But we’re certainly not at that point yet.
The Intermediate Term Model remains bullish.
The second trading day of the year is historically the strongest day of the year, and the daily model is appropriately bullish today. TOT daily traders are advised to go 200% long at SPX 1134 stop or at SPX 1128 limit, whichever comes first. If you go long, use a 1% sell stop on the position.
Thanks for the opportunity to be of service, and I’ll email you again between 10:45 and 11:00 a.m.
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