The SPX declined 37.01 points yesterday to close at 1283.27. TOT daily traders took profits on our 400% long position almost 50 point higher than that on Friday, and have been on the sidelines since then.
The bond model remains neutral, and the gold model remains bullish.
The super long term perspective for the stock market remains bearish.
However, both the long-term model (a six month perspective) and short term model (a one month perspective) remain bullish.
The sharp selloff has set the stage for a modest advance, and the daily model is bullish today. TOT daily traders should go 300% long at the market. Use a 15 point protective sell stop. If not stopped out, carry your position overnight and into tomorrow.
While this bear market is far from over, there is the possibility that this leg is finished for awhile. There was a lot of professional short covering near the close yesterday, one day TRIN was at climactic levels, and defensive bond buying reached near panic proportions.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6000.24 cumulative SPX points, compared to a gain of 824.34 points in the index itself over the same period.
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