This is Turov on Timing for Wednesday, January 13, 2010.
The Standard & Poor’s 500 Index (“SPX”) declined 10.76 points yesterday to close at 1136.22. TOT daily traders went 300% short at SPX 1143.81 and have held the position overnight and into today.
The super long term perspective for the stock market remains bearish (as it has been since January 2000). I expect that the bear market will resume in earnest later this year, leading to a possible end to that decade long perspective at lower prices in 2011 or 2012. But we’re certainly not at that point yet.
The Intermediate Term Model remains bearish.
In the absence of unexpected news, I expect to see some strength in the market in the early going, but it should fade as the day progresses. TOT daily traders come into the session 300% short. Lower your buy stop to a very tight SPX 1137. Furthermore, if stopped out, go 200% long at the same time and price. If you go long, use a 10 point protective sell stop on the position.
Thanks for the opportunity to be of service, and I’ll email you again between 10:45 and 11 a.m. – or sooner if circumstances warrant.
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