This is Turov on Timing for Wednesday, August 2, 2006.
The SPX declined 5.74 points yesterday to close at 1270.92. TOT daily traders went 200% short at SPX 1277 on Friday and have held the position overnight and into today.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8962.51 cumulative SPX points, compared to a gain of 811.99 points in the index itself over the same period. That’s a ratio of 11.04 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.
Both the long and short term models remain bearish.
While the trend is quite probably towards lower prices, the bears are not so much in control that some good news (as the market perceives it) wouldn’t cause a rally. So SPX 1280 or so is still quite possible, and for that reason, we’re going to leave our daily traders stop where it is.
As was the case yesterday, the daily model is modestly bearish today. TOT daily traders come into today’s session 200% short from SPX 1277. For reasons just expressed, maintain your protective buy stop at SPX 1282. If not stopped out, carry your position overnight and into tomorrow.
One final note: CNN ran an article yesterday in which I am quoted. That article appears on the web at http://money.cnn.com/2006/08/01/markets/stocksinsummer/index.htm
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
Turov on Timing is Copyright (c) 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.