The SPX advanced 7.56 points yesterday to close at 1097.54. TOT daily traders were on the sidelines for the session.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain neutral.
The market had a decent spurt shortly after the opening when a brokerage house hit the floor with 2000 S&P contracts to buy. But there was no follow-through, and the market gave back the entire gain. Late in the session, short covering in front of Intel’s and IBM’s announcements gave the market another lift. As I’ve said several times in the past month, in the absence of any negative news, the path of least resistance is up.
At present prices, the daily model is neutral. However, if it were to rally to 1119 or higher, at or after 9:40 am, TOT daily traders are advised to go 300% short. If you go short, use a 12 point protective buy stop from your entry price. If not stopped out, carry your short overnight and into tomorrow.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 6562.95 cumulative SPX points compared to a gain of 638.61 points in the index itself over the same period.
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