Friday, July 22, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot kicks off a lower number shortly after the bell. That firmly places the algorithm back on the bearish side, amazing how Keybot came within seconds of going long yesterday but held back, and now the indexes are trailing lower. The robots are smarter than the humans. The SPX, however, remains about 13 points above where Keybot the Quant went short 10 trading days ago.

The news wires are leading to jumpy markets so who knows how the day will play out.  No attempt was made at SPX 1347 so this was a feather in the bears cap.  The XLF dropped under the 15.32-15.33 area, so the bears came to play today.  XLF now at 15.27 is back in the bear camp, and this weakness in financials will weaken broad markets.

The formidable S/R zone at 1329-1333 folded like a cheap suit the other day when price spiked up thru like it was not there, thus, a back kiss to 1333 would be in order.  SPX S/R is 1344, 1341, 1337, 1333, 1331, 1329, 1326. SPX now testing 1337 support. Markets remain unstable, stay on guard.

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 =
7/22/11; 9:43 AM EST = +18; signal line is +24
7/21/11; 12:39 PM EST = +34; signal line is +23 but algorithm says stay short
7/21/11; 9:49 AM EST = +18; signal line is +20
7/19/11; 9:00 AM EST = +4; signal line is +19
7/18/11; 3:54 PM EST = +4; signal line is +17
7/18/11; 10:06 AM EST = -10
7/17/11; 7:00 PM EST = +4; signal line +15
7/15/11; 10:00 AM EST = +4
7/11/11; 10:34 AM EST = +4; signal line is +12; go short 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=+3.0%; Keybot for 2011=+7.8%)(Actual this trade via IWM=+3.7%; Actual for 2011=+2.8)

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