The SPX declined 2.13 points yesterday to close at 1084.07. TOT daily traders were on the sidelines for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8312.65 cumulative SPX points compared to a gain of 625.14 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.
The long term model remains bearish, and the short term model remains ever so slightly bullish.
The daily model was correct in its bearish reading yesterday, and I suppose I was wrong in overriding it. But, in reality, it didn’t matter much either way as the day’s decline was miniscule.
Although I don’t report it on the TOT service, I run a bond model which has moved into very bullish territory. Candidly, I can’t imagine why it has, as it’s hard to imagine long term rates declining much. Yet, the model is strongly bullish, and perhaps that’s signaling a much weaker economy in our future than the Wall Street bulls would like to have us believe is ahead of us.
I think the market is in the process of creating its second down leg in a super bear market, the first leg having been 2000 to 2002. Nevertheless, a brief rally is probably at hand, and going long into strength is probably warranted – in small doses, considering that risk remains high.
TOT daily traders are advised to go 200% long at SPX 1086 stop. If you go long, use a protective sell stop at SPX 1077. 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.
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