This is Turov on Timing for Wednesday, March 13 and for Thursday March 14, 2002.
The SPX declined 2.68 points yesterday to close at 1165.58. TOT daily traders went 100% short on the opening and have held the position overnight and into today.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain bullish.
At the time I transmitted yesterday’s email message, I had no way of knowing that the futures were going to open so much lower. They were only down a fraction when I wrote the hotline. A detailed analysis of the interrelationship of the cash index and futures appeared in the October 2000 issue of Turov on Timing and is available on request from The Hirsch Organization.
The directional component of the daily model is bullish today, but the risk component is extremely high. TOT daily traders come into today’s session 100% short. Cover your short on the opening and move to the sidelines.
The market has had a significant advance, and it had the opportunity yesterday for some serious profit taking, but the bears couldn’t take control. We need to see what happens over the next two sessions in order to have the potential for a decent daily model reading. Therefore we will stay on the sidelines both today and tomorrow, and will review the market’s status 6 hours before the market opens on Friday.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6839.26 cumulative SPX points compared to a gain of 706.75 points in the index itself over the same period.
Thanks for calling, and I’ll speak with you again in 48 hours.