Thursday, June 30, 2011

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains comfortably long as the end of the month, end of Q2 and end of H1 closes out this evening with no change to the algorithm number.

Watch the financials tomorrow since they will help set the direction for the broad markets.  The XLF is at 15.35 and perceived as bearish by the algorithm but only by one measly point.  If the XLF moves above 15.36 tomorrow, the market bulls will run the indexes for one more day. If the XLF stays under 15.36, that will be the hint that the indexes have had enough upside this week and plan on floating out sideways or sideways with a downward bias.

For the SPX for tomorrow, if the market bulls can touch a 1322 handle, only a point and one-half higher, the buyers will come back in force again, and the day will be another run higher, the SPX moving up thru 1323 and 1326 and perhaps testing formidable resistance at 1329.  Markets are typically buoyant the two days in front of a holiday weekend, today certainly was.

The market bears continue to hold the short end of the stick.  Bears need to drive the SPX south 13 points, to get under the 1308 handle, if they want to accelerate the downside. Otherwise, a move between 1308 and 1321 represents sideways slop and the indexes will slide into the weekend on the lower anticipated volume.

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= +18
6/30/11; 1:16 PM EST = +18
6/30/11; 12:08 PM EST = +34
6/29/11; 10:41 AM EST = +18
6/29/11; 9:30 AM EST = +4
6/28/11; 10:30 AM EST = -12
6/28/11; 10:00 AM EST = -28; signal line is -30
6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

2 comments:

  1. The market bears continue to hold the short end of the stick.

    ReplyDelete
  2. Not sure why you highlighted that line BAC. To provide more color, the bears are getting slapped silly in this very short time frame this week.

    The problem for the bulls is that the rally was due to the Greece vote drama, Trichet pumping the euro (thus, commodities and equities run the same direction as the euro), and quarter end window dressing--none of which provide a fundamental reason to be bullish for the intermediate or longer term.

    Since the NYA fell thru the 40 week MA to indicate a secular bear market was at out doorstep, but this week NYA blew back up thru the 40 week MA to maintain the secular bull market, watch this indicator closely for signs of the markets faltering again moving forward.

    ReplyDelete

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