The SPX declined 9.56 points yesterday to close at 890.16. TOT daily traders were 200% short for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7174.74 cumulative SPX points compared to a gain of 431.23 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish.
The long term model remains bullish, and the short term model remains neutral.
The market staged a decent comeback in the afternoon yesterday, but the day still ended with more than a 2:1 negative advance/decline ratio on the NYSE. Of possible significance is that the Nikkei opened very weak and then strengthened significantly in Wednesday morning trading in Tokyo. Both the selloff and the recovery were news related, and news specifically related to Japan’s banking system, so it may be of limited relevance to the European and American markets.
The daily model is only very slightly bearish today. I would not be the least surprised it the SPX makes another attempt to breach the 900 level and if the Dow tries to make it over 8500 again and if NASDAQ tries to make it over 1300. But in the absence of unexpected positive news, a modestly lower drift is the most likely probability.
TOT daily traders come into today’s session 200% short. Maintain your stop at SPX 911.45. If the SPX declines to 880, lower your stop to 896. If not stopped out, carry the position overnight and into tomorrow.
Thanks for the opportunity to be of service to you, and I’ll email you again six hours before the start of tomorrow’s trading session – or sooner if circumstances warrant.
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