An excellent day for the home team as the SPX declined 17.35 points yesterday to close at 965.47. TOT daily traders came into the session a maximally bearish 500% short and have carried the position overnight and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7844.11 cumulative SPX points compared to a gain of 506.54 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish, and it’s unlikely anything will change that for several years.
Both the long and short term models remain bearish.
I anticipate seeing the market weaken further, and for there to be a flight to Treasury bonds. Expect a lot of changes in asset allocations from the Wall Street numbers crunchers. That expectation notwithstanding, with large Treasury auctions today and tomorrow, just about anything is possible for the balance of the week – with volatility about the only certainty. But when the auctions are out of the way, a hedge of long T-bonds and short stocks should work out fairly well, based on current prices.
On yesterday’s hotline, I invoked, “Hopefully, we will see a repeat of Monday morning’s action, without a repeat of Monday afternoon’s,” and the Pooh Bah of invocation responses heard my plea! The market was weak in the morning, and the weakness continued into the afternoon. It may be getting close be being just a tad overdone. TOT daily traders come into today’s session a maximally bearish 500% short. Cover your short at SPX 952 limit or at SPX 974 stop, whichever comes first, although there’s a good chance I will issue an intraday update (or even pre-opening update) with changes in those recommendations. If I don’t, and if neither stop nor limit is reached, then carry the position overnight and into Thursday.
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) 2003 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 publisher.