The SPX advanced 19.36 points yesterday to close at 911.37. TOT daily traders went short early in the session, saw the short work well for a while, and then we were stopped out as the market reversed to the upside.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7479.30 cumulative SPX points compared to a gain of 452.44 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 neutral, and the short term model remains bullish.
I’ve never been one to BS my readers, and I’m not about to start now. Simply put, I was flabbergasted at yesterday’s session. True, there were reasons for the advance – excellent earnings from LMT, RE, and some others, good news from DUK, France’s comments regarding Iraqi oil, Bush’s decision to reappoint Greenspan, to name but a few – but the fact that the market kept advancing despite horrendous readings on my intraday model was truly amazing. Breadth was good, volume was impressive, and the march higher was steady throughout the afternoon.
Today puts us in an interesting situation. The daily model is solidly bullish. However, there is massive resistance between current levels and about 10 points higher. In such an environment, the likelihood is that the market will rally, but not by much, considering its short term overbought situation. On the other hand, if it can get through the overhead resistance, the market could surge. TOT daily traders are advised to go 400% long into any pullback to SPX 903 limit. If you go long there, use a protective sell stop at SPX 886. I’m not ready just yet to jump on the bandwagon into strength, but I could change my mind, depending on how trading goes. An intraday email update is a real possibility.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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