The SPX advanced 12.32 points yesterday to close at 1236.72. The market started out like gangbusters, but the last several hours were very, very sloppy. Not a good sign for a continued advance.
The super long term perspective for the stock market remains bearish. However, both the long and short term models remain bullish.
The day before the 4th of July is up about 2/3 of the time, but the daily model is able to generate merely a neutral reading today. TOT daily traders come into today’s session 300% long. Raise your stop substantially to SPX 1232. If stopped out, go 200% short at the same time. Use a very tight 8 point buy stop on the short position if indeed you do go short. On the other hand, if not stopped out and if the SPX rises to 1245, take your profit. In the unlikely event that you do sell at 1245 and the market then declines to 1232, do indeed go short at that level and use the aforementioned stop. Whatever your position on the pre-holiday shortened session close, carry your position over the holiday and into Thursday.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6485.91 cumulative SPX points compared to a gain of 777.79 points in the index itself over the same period.
Thanks for calling, and I’ll speak with you again in 48 hours.