The SPX advanced 13.27 points yesterday to close at 798.55, essentially reversing Monday’s loss. TOT daily traders were on the sidelines for the session.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 7129.21 cumulative SPX points compared to a gain of 339.62 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish.
Both the long and short term models remain bullish, although the short term model is on thin ice.
Although the SPX advanced, the NYSE and NASDAQ advance/decline ratios were both negative, and only 3 of the 10 most active stocks on the NYSE advanced. The day was volatile with a lot of high volume churning, and the Dow Jones Utility Index was down by a whopping 6% (equal to the percentage equivalent of 442 Dow Industrial points).
The daily model is bearish today. Risk is still very high, and short selling should be done with a tight stop. TOT daily traders are advised to go 200% short at SPX 797 stop, just slightly below yesterday’s close (but about 4 points below where the futures closed. If you go short, use a protective buy stop at SPX 812. If not stopped out, carry your short overnight and into tomorrow.
IF (and that’s a big IF) the market gets smashed today or tomorrow, it’s likely to be the low for the year.
Thanks for the opportunity to be of service to you, and I’ll email you again in 24 hours – or less if circumstances warrant.
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