This is Turov on Timing for Tuesday, September 26, 2006.
The SPX advanced 11.59 points yesterday to close at 1326.38. TOT daily traders went 200% short at SPX 1324 on Thursday and covered that short yesterday at SPX 1328. today.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8928.68 cumulative SPX points, compared to a gain of 867.44 points in the index itself over the same period. That’s a ratio of 10.29 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several years.
The long term model remains neutral, and the short term model remains bearish.
The only good news about yesterday’s rally is that we were only 200% short (out of a maximum possible 500%). The bad news is that the rally totally caught me with my pants down. It was, candidly, quite a surprise.
The daily model is modestly bearish once again today, and any subscriber who wants to go short would get no argument from me. However, “officially” I am going to override the signal and recommend standing aside, as I am still somewhat perplexed by yesterday’s surprising advance.
Thanks for the opportunity to be of service, 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 © 2006 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.