The SPX advanced 7.77 points yesterday to close at 1108.67. TOT daily traders went 400% short at an average price of SPX 1107 on Friday and covered the short at SPX 1102 yesterday.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8312.65 cumulative SPX points compared to a gain of 649.74 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.
The long term model remains bearish. However, the SHORT TERM MODEL HAS UPTICKED FROM BEARISH TO BULLISH. Repeating, the SHORT TERM MODEL HAS UPTICKED FROM BEARISH TO BULLISH.
The directional component of the daily model is bullish today, but the risk component is in the stratosphere. Preserving capital is always more important than adding to capital, and the risk of going long here is just too great. I wouldn’t want to be short either, but prudence screams for caution right now. Stand aside.
Yesterday I said, “My gut feeling is that the market wants to move higher here,” and that’s what happened. Right now “my gut” (or more accurately put, my intuition) is that the rally will be very short lived, and the market will reverse to the downside fairly soon. Expect volatility, which has been very muted recently, to pick up substantially.
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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