The SPX advanced 17.50 points yesterday to close at 1197.66. TOT daily traders went 300% long at SPX 1185 and have held the position overnight and into today.
The bond and gold models remain bearish.
The super long term perspective for the stock market remains bearish.
However, both the long and short term models remain bullish, although both have become quite tentative.
Yesterday’s rally was welcome, but it was anemic. There was no spark to it; no spirit. Under the surface, there was distribution. It is unlikely to carry very far before a retesting of the lows. Indeed, the daily model is bearish today, although I don’t expect much downside action either. More likely, we’ll see a little more rally, and then some drift.
TOT daily traders come into today’s session 300% long. Lower your stop to SPX 1190. If the SPX advances to 1205, raise your stop to 1195. And for each additional 5 point advance, raise your stop an equivalent 5 points. If not stopped out, carry your position overnight and into tomorrow.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6247.09 cumulative SPX points, compared to a gain of 738.73 points in the index itself over the same period.
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