The SPX declined 12.09 points yesterday to close at 815.28. TOT daily traders were 200% short for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7158.02 cumulative SPX points compared to a gain of 356.35 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish. Despite what I’m going to say in the next paragraph, the primary bear market is not over. Indeed, it has a LOT further to go.
However: Major news here: Both the long and short term models have upticked from neutral to bullish. Repeating, both the long and short term models are now bullish.
I want to explain what that means. It does not mean the bear market is over. As regards the long term model, it means that the probability is that the next 20% move will be up rather than down, and as regards the short term model, it means that the probability is that the next 5% move will be up rather than down.
The daily model is bullish today, although we could get some more selling before we reverse to the upside. TOT daily traders come into the session 200% short. Maintain your short for the time being, but lower your stop to SPX 821. If the SPX declines to 800, lower your stop again to SPX 810. And for each additional 10 point decline, lower your stop by an equivalent 10 points. If you get stopped out below SPX 800, go 300% long at the same time. On the other hand, to the upside, if you are not yet long and the SPX rises to 828, go 200% long at that price. If you go long either on weakness or on strength, use a 15 point protective sell stop on your position. Whatever your position on the close, carry it overnight and into tomorrow.
Thanks for the opportunity to be of service to you, and I’ll email you again in a few hours.
Turov on Timing is Copyright (c) 2002 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.