This is Turov on Timing for Tuesday, May 27, 2008.
The SPX declined 18.42 points Friday to close at 1375.93. TOT daily traders were stopped out of Thursday’s long position at a breakeven and suffered not from Friday’s sharp selloff.
Over the past 47 weeks, TOT daily traders have outperformed the SPX 31 times and underperformed 16 times. That’s a ratio of 1.94 to 1.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 10449.85 cumulative SPX points, compared to a gain of 917.00 points in the index itself over the same period. That’s a ratio of 11.40 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several more years.
The intermediate term model remains bearish. On Wednesday morning, I said, “I expect to see the SPX put up a gallant fight to stay above 1400, but when that level is breached to the downside, a waterfall decline is not out of the question.” We probably saw the beginning of that waterfall on Wednesday, and Friday’s decline added momentum to the cascade.
The daily model is neutral coming into today, but depending on how it acts during the first hour or so, the potential for a trade will exist. I’ll email you again between 10:45 and 11:00.
Thanks for the opportunity to be of service, and I’ll email you again in a few hours – or sooner if circumstances warrant.
Turov on Timing is Copyright © 2008 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.