The SPX declined 15.30 points yesterday to close at 785.28. TOT daily traders were on the sidelines for the session, preserving capital.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7129.21 cumulative SPX points compared to a gain of 326.35 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain bullish, although the short term model is on thin ice.
Yesterday, I said, “The directional component of the daily model is very bearish today, but the risk component is almost at maximum. That means that while the probability is that the market will decline today, it is extremely susceptible to a major short covering rally should positive news come out.” Well, we had no such news, and so the bearishness of the daily model prevailed. The bad news is that today, nothing is different. Probably in response to the President’s beating the war drums, Globex futures are about 6 points above fair value, but there’s no reason for that gain to hold, in the absence of some significant unexpected news. Old timers – gee, I just realized that includes me – may remember May 1970 when we had day after day of relentless selling before an end of the month rally that marked the beginning of a two year mini-bull. But while the selling continued, it seemed like it would never end.
In any event, while I’m still watching the intraday model for any extraordinary opportunities, standing aside is still the best strategy.
Thanks for the opportunity to be of service to you, and I’ll email you again in 24 hours – or less 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.