The SPX advanced 18.26 points yesterday to close at 951.48. TOT daily traders went 300% long at SPX 931 and have held the position overnight and into today.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7619.56 cumulative SPX points compared to a gain of 492.55 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.
However, both the long and short term models remain bullish. As I said on the May 7 hotline, “I expect to see the SPX over 1000, and perhaps approach 1100, within a year. We may still see SPX 700 several years down the pike, but for the next year, the bulls should reign.”
Beginning at about SPX 944 yesterday, there was massive negative divergence on my intraday model, indicating that “smart money” (specialists and market makers) were selling the rally. Indeed, I was rather surprised that we did not have an intraday selloff of 5-7 points before an upside resumption; I’m sure the “smart money” was also surprised! In the past, when this has happened AND the market kept going up anyway, the market has then most often gone up for another day or two and then reversed course for a few sessions – not always (that would make life too easy) but often.
The directional component of the daily model is bullish today. However the risk component is very high, and certain factors are in place which guarantee that it will get even higher tomorrow. Indeed, there is a 100% certainty that the risk component of the daily model will be so high tomorrow that the overall model will be neutral – regardless of what the directional component may be tomorrow. But that’s tomorrow. For today, TOT daily traders come into today’s session 300% long from SPX 931. Raise your stop to SPX 944. On the upside, if we get to 959, take your profit. If neither 944 nor 959 is reached, carry your position overnight and into tomorrow.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant. Turov on Timing is Copyright (c) 2003 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the publisher.