Wednesday, April 27, 2011


Keybot the Quant remains long to start the FOMC Superbowl today; rate decision at 12:30 PM EST, no change is expected, and the much-awaited Q&A session by chairman Bernanke at 2:30 PM. All major sectors are bullish except for copper and financials.  The algorithm is most focused on these two as well as retail and volatility.

SPX finally filled the 1340 gap that has remained open for two months.  More than likely, markets should idle in front of the press conference, a move up that touches 1350, however, will immediately jump the SPX a few more handles higher.  Market bears need to see the 1337 lost to accelerate any move lower.

The big deal today is any statement on the dollar or quantitative easing by Chairman Bernanke that will immediately impact markets, one way or the other; dollar up=commodities and equities down, and, visa versa, dollar down=commodities and equities up.  The upside appears limited but the downside is not.  We will see what numbers Keybot clicks off, if any, today.  An active day is expected for the algorithm but no one knows until it plays out.  Markets remain unstable, caution is warranted.

5/8/11; 7:00 PM EST =
5/7/11; 9:00 AM EST =
5/1/11; 7:00 PM EST; EOM (April) =
4/29/11; 10:00 AM EST =
4/26/11; 10:00 AM EST = +44; signal line is +40
4/25/11; 9:30 AM EST = +44
4/24/11; 7:00 PM EST = +60
4/21/11; 9:35 AM EST = +60
4/20/11; 9:30 AM EST = +44; signal line is +42; go long 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=-0.7%; Keybot for 2011=+1.0%)(Actual this trade via DXD=-1.9%; Actual for 2011=-2.0%)
4/19/11; 9:00 AM EST = +28

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