The SPX declined 29.91 points Friday to close at 1921.22. TOT daily traders were on the sidelines for the session and avoided the selloff.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 15851.61 cumulative SPX points, compared to a gain of 1462.29 points in the index itself over the same period. That’s a ratio of 10.84 to one. (Please note that any day in which the daily model fails to outperform the SPX by at least a ratio of +10.84 to one, since that’s the ratio of outperformance already achieved, that ratio will decline.)
(The commentary in this paragraph last updated August 24, 2015) The super long term perspective (i.e., it’s a prediction, not a forecast!) for the stock market remains bearish (as it has been since January 2000 after having been bullish for over 25 years, from December 1974 until then). The cyclical bull market that began a few years ago may have ended last Friday, but that’s unclear at present. For a long time, I have written that I expect “to see a bear market of 35% to 50% magnitude” but I do not have enough evidence to say that this is the beginning of a decline of that magnitude. Regardless, I expect to see our new 2016-elected President have some very serious problems during his or her single term in office.
(The commentary in this paragraph last updated September 8, 2015.) The market is likely to have a big rally – after it tests its lows. The Intermediate Term model remains bearish.
As to today, the market is likely to see its high in the morning. While the Daily Model is bearish for today, my Index Models are uniformly modestly bullish for the period from Friday’s close through 10:45 a.m. today, but they are modestly bearish from that time through the close. Keeping in mind that all forecasts are based on probabilities in a news-neutral environment and not on a magical crystal ball, TOT daily traders are advised to go 300% short at SPX 1920 stop. If the SPX advances (as expected) to 1924 before reaching 1920, raise the entry sell short stop to SPX 1922. And for each additional 2 point advance, if applicable, raise the entry sell short stop by an equivalent 2 points. Once short, use a 1% protective buy stop on the position.
Thanks for the opportunity to be of service, and I’ll email you again later today.
Turov on Timing is Copyright © 2015 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 including the fact that past performance is not a guarantee of future performance. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc. All recommendations are based on the Standard & Poor’s cash index (SPX) which cannot be directly traded and Turov Investment Group Inc. makes no recommendation or suggestion to readers as to how SPX-based recommendations should be traded but rather leaves that to the discretion of each individual reader. The “official” price of the opening and closing SPX is as reported at www.bigcharts.com and may not be consistent with futures or ETF prices. All stop recommendations are based on that “official” price. Any recommendation that is to take place at a specific time is basis the “opening” on a one minute bar chart beginning at that time and ending one minute later. All times mentioned are Eastern. Questions related to this service should be directed to InvestmentAdvice@aol.com.