Sunday, June 26, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot is short to start the new week; the algorithm has remained short thru these two weeks of large point swings and higher volatility.  Most traders have been getting whipsawed on both the long and short sides, throwing up their arms in frustration.  Keybot is a smart robot, at least this appears to be the case for now.

Markets have taken a beating in May and June.  Negativity was high on Friday with the majority of traders not wanting to be long over the weekend--typically a contrarian indicator.  Seasonality says this coming Thursday and Friday should be buoyant and bull-friendly.

For the SPX for Monday, starting at 1268, if the market bears can only push a point or so lower at the open, then the selling will accelerate once again, the SPX will drop down to test 1262, then 1258-1259, the starting number for the year. The bulls need to start the day out with positive futures, perhaps on happy Europe/Greece news, and simply prevent a breach of 1267.24 with all their might.  This way, the bulls can at least stop the bleeding.  Otherwise, if 1267.24 is lost, the market bears have come to play again and Monday will be ugly.

Markets are unstable and remain at the mercy of Europe/Greece news. The algorithm clicks off three pre-scheduled numbers this week, one each on Tuesday, Thursday and Friday.  Watch this asset relationship; Up euro=down dollar=up commodities=up equities, and visa versa, down euro=up dollar=down commodities=down equities.

7/31/11; 7:00 PM EST EOM =
7/29/11; 10:00 AM EST =
7/26/11; 10:00 AM EST =
7/24/11; 7:00 PM EST =
7/19/11; 9:00 AM EST =
7/17/11; 7:00 PM EST =
7/15/11; 10:00 AM EST =
7/10/11; 7:00 PM EST =
7/8/11; 9:00 AM EST =
7/3/11; 7:00 PM EST =
7/1/11; 10:00 AM EST =
6/30/11; 7:00 PM EST EOM EOQ2 EOH1=
6/28/11; 10:00 AM EST =
6/26/11; 7:00 PM EST = -42
6/24/11; 9:45 AM EST = -42
6/23/11; 3:51 PM EST = -28; signal line is -30 but algorithm says stay short
6/23/11; 9:31 AM EST = -42

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