A horrid day for the market (and a pretty bad day for us as well) as the SPX declined 20.67 points yesterday to close at 1655.45. TOT daily traders went 300% long at SPX 1674 and were stopped out at SPX 1664. We are currently flat.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 13451.29 cumulative SPX points, compared to a gain of 1196.52 points in the index itself over the same period. That’s a ratio of 11.24 to one.
(The commentary in this paragraph last updated June 28, 2013) The super long term perspective for the stock market remains bearish (as it has been since January 2000 after having been bullish for over 25 years, from December 1974 until then). I continue to expect the market to suffer more pain before the primary bear market is over, some years in the future.
(The commentary in this paragraph last updated October 7, 2013) The news-neutral Intermediate Term Model remains bullish. The purely statistical and news-neutral odds are that the recent decline from the highs is about over, and the market will challenge those highs sooner rather than later. However, it is obvious that current uncertainty regarding the hot air in Washington will continue to dominate the market until that uncertainty is resolved, one way or another.
I find it ironic that just about everyone says the US is not going to default, and then the market declines on fears of default. It just goes to show how much stronger an emotion fear is than greed.
Once again, the news-neutral daily model is bullish today, and once again, I expect to see the market work its way higher. TOT daily traders are advised to go 300% long at the first sign of strength; i.e. SPX 1656 stop. If the SPX declines to 1650 before advancing to 1656, lower your entry buy stop to SPX 1652. And for each further 2 point decline, lower your entry buy stop by an equivalent 2 points. If and when you go long, use a protective sell stop 1% below your entry level. And, since it is a 100% certainty that the daily model will be bullish Thursday, regardless what happens today, if not stopped out, carry the position overnight and into tomorrow.
Thanks for the opportunity to be of service, and I’ll email you six hours before the start of tomorrow’s trading session.
Turov on Timing is Copyright © 2013 by Turov Investment Group Inc. All rights reserved. Turov on Timing is for personal use only. All caveats and advisories that appear in the monthly Turov on Timing apply equally to this email. Re-publication and distribution is strictly prohibited. No part may be reproduced without the permission of the Turov Investment Group Inc. All recommendations are based on the Standard & Poor’s cash index (SPX) which cannot be directly traded and Turov Investment Group Inc. makes no recommendation or suggestion to readers as to how SPX-based recommendations should be traded but rather leaves that to the discretion of each individual reader. The “official” price of the opening and closing SPX is as reported at www.bigcharts.com and may not be consistent with futures or ETF prices. All stop recommendations are based on that “official” price. Any recommendation that is to take place at a specific time is basis the “opening” on a one minute bar chart beginning at that time and ending one minute later. All times mentioned are Eastern. Questions related to this service should be directed to InvestmentAdvice@aol.com.