This is Turov on Timing for Tuesday, May 31, 2011.
One final Memorial Day comment, this one from Will Rogers from ¾ of a century ago: “One sure certainty about our Memorial Days is that as fast as the ranks from one war thin out, the ranks from another take their place. Prominent men may run out of Decoration Day speeches, but the world never runs out of wars. People talk peace, but men give up their life’s work to war.” Amen…
The SPX advanced 5.41 points Friday to close at 1331.10. TOT daily traders went 300% short at 9:40 a.m. at SPX 1331.10 and then covered the position on the close – and just by chance at the exact same price.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 12491.56 cumulative SPX points, compared to a gain of 872.17 points in the index itself over the same period. That’s a ratio of 14.32 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000 after having been bullish from December 1974 until then). When the current cyclical bull market ends, expect another nasty crash to perhaps finally bring an end to the long term bear market that began in 2000.
The Intermediate Term Model remains bearish although I am not looking for any waterfall decline anytime soon. All indications are that the current decline will be small and short-lived.
On Friday, I said, “The probability (but not a certainty) is that the daily model will be bullish on Tuesday.” Well, overnight futures are up about ¾% as I write this, and the odds are that if that gain holds, it will be the high of the day. TOT daily traders are advised to go 200% short at the market at 9:40 a.m., ten minutes after the market opens. Once short, use a 10 point protective buy stop.
Thanks for the opportunity to be of service, and I’ll email you again ten minutes before the end of today’s trading session – or sooner if circumstances warrant.
Turov on Timing is Copyright © 2011 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.