The SPX advanced 1.35 point Friday to close at 933.22. 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 7558.12 cumulative SPX points compared to a gain of 474.29 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.
However, the long term model remains bullish. Furthermore, it appears that the recent downtick in the short term model was a whipsaw, as the short term model has upticked back to bullish. Repeating, both the long and short term models are bullish once again.
While seasonal and repetitive patterns tell just small parts of the market story, they are often far from irrelevant. The current situation is rather interesting, I think: Prior to 1968, Memorial Day was celebrated on the 30th of May, regardless what day of the week that was. Beginning in 1968, Memorial Day became fixed as the fourth Monday in May. Since then, there have been seven instances (prior to 2003) when the DJII advanced on both the preceding Thursday and the preceding Friday – four times in the 1970’s and three times in the 1980’s. Prior to last week, it has not occurred since 1987.
The Tuesday following the four instances in the 1970’s (1972, 1973, 1974, and 1975) were ALL followed by declining Tuesday’s (-.01%, -.57%, -.29%, and -.70%). The Tuesday following the three instances in the 1980’s (1980, 1986, and 1987) were ALL followed by advancing Tuesday’s (+.43%, +1.63%, and +2.44%).
Does this have any significance? Perhaps – but unfortunately, if so, I don’t know what it might be!
In any event, the daily model is bullish today. TOT daily traders should go 300% long at SPX 934 stop or SPX 931 limit, whichever comes first. Use a protective sell stop at SPX 918 – although I might raise that later in the day. 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.
Turov on Timing is Copyright (c) 2003 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the publisher.