The SPX declined 3.60 points Friday to close at 1125.38. 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 8235.09 cumulative SPX points compared to a gain of 666.45 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.
Both the long term and short term models remain bearish.
While most of the market indices were down Friday, the NYSE advance/decline ratio was a strong 8:5. That strength is completely attributable to the strength in the bond market and all the fixed-income related securities currently listed on the Big Board. The advance/decline ratio on NASDAQ more accurately reflected the tone of the market with a modestly negative ratio.
Of more than passing interest, nine of the ten most active stocks on the NYSE declined Friday. The only exception was Wal-Mart, which advanced on the announcement of strong June sales.
Volume was extremely light, but I wouldn’t put much significance in that, considering that it was the day prior to a holiday weekend.
The daily model is solidly bearish today, although I’d expect to see the market open modestly up because nothing horrible happened in the world over the weekend. TOT daily traders are advised to go 400% short at SPX 1123.50 stop or at SPX 1128 limit, whichever comes first. When executed, use a 13 point protective buy stop. If not stopped out, carry your position overnight and into tomorrow. While the bulls are not about to capitulate without a fight, the market seems very likely to move lower in the near future.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances permit.
Turov on Timing is Copyright (c) 2004 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc.