This is Turov on Timing for Tuesday, November 18, 2008.
At 3:55 yesterday, I emailed you, saying, “If the market can hold reasonably close to current levels in the next 5
minutes, the odds favor a stronger opening tomorrow.” Unfortunately, in that brief 5 minutes, from 3:55 to 4:00,
the SPX declined 6.63 points from 857.38 to 850.75, a significant decline of .77%. That’s not “reasonably close.”
For the day, the SPX was down 22.54 points. TOT daily traders were on the sidelines for the session.
The daily model is neutral today. However, the Intermediate Term Model has upticked from bearish to bullish.
That’s because the potential magnitude of a sharp advance is far greater than the potential magnitude of a sharp
decline. I am, therefore, going to recommend going long, but only on meaningful strength:
TOT daily traders are advised to go 100% long at SPX 855 stop, another 100% long at 860 stop, etc. at 5 point
increments, up to a maximum 500% long. Use a 10 point stop on each unit, calculated separately. So it’s possible,
for example, to go long at 855, get stopped out at 845, and then go long again at 860. Unconventional, to be sure,
but this is not a conventional market.
I will update again between 3:50 and 3:55 with a preview of Wednesday. Thanks for the opportunity to be of service,
and I’ll email you again then.
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.