The SPX advanced 15.33 points yesterday to close at 899.72. 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 7162.16 cumulative SPX points compared to a gain of 440.79 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish.
The long term model remains bullish, and the short term model remains neutral.
The past two Tuesdays have been strong days, with the SPX rising 13.27 and 39.83 points. Both were followed by weak Wednesdays, with the SPX falling 21.79 and 21.25 points. I don’t think this has any significance at all, but I find it curious.
The 10 day moving average of the term trading index – TRIN – has fallen to the lowest (and therefore, most overbought) level since Spring 2000. Were it accompanied by great enthusiasm in the market (e.g. heavy volume, overwhelmingly favorable advance/decline ratios, big gains in the 10 most active stocks, etc.) I’d say that it was bullish for at least a few more sessions. But none of that is occurring, and as a result, a pullback is a real possibility.
The daily model is corroborating that and is modestly bearish today. TOT daily traders should go 200% short at SPX 907 limit or 897 stop, whichever comes first. Use a 15 point protective buy stop on the position. If the SPX declines 15 points from your shorting point, lower the stop to a breakeven. If not stopped out, carry the position overnight and into tomorrow.
Thanks for the opportunity to be of service to you, and I’ll email you again six hours before the start of tomorrow’s trading session – or sooner if circumstances warrant.
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.