A very good day for the home team as The SPX declined 16.83 points yesterday to close at 1131.87. TOT daily traders came into the session 200% short and then went an additional 200% short on the opening. We have held the position overnight and into today.
The super long term perspective for the stock market remains bearish.
The long term model remains neutral, and the short term model remains bearish.
On March 20’s daily hotline report, I recommended going short at SPX 1170, and we did so. We then covered that short at 1145 and re-shorted at 1150 and have held that through this morning. On that same hotline, I also stated, “The potential exists for 30 to 40 points to the downside.” We got within 2 points of reaching the MAXIMUM objective on yesterday’s close, and it came in only four trading sessions. The objective has been reached.
The daily model is neutral today, with the objective having been reached, and with no particular reason to go long. TOT daily traders come into today’s session 400% short. Take your profit on the opening and move to the sidelines. I expect the market to meander slightly higher, in the absence of any significant news, but no significant rally is likely without important news.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6894.14 cumulative SPX points compared to a gain of 672.94 points in the index itself over the same period.
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