Saturday, July 23, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot printed a late morning number taking the algorithm back above the signal line, ready to reverse to the long side, but, other algorithm rules continue to hold it back, at least so far, and Keybot remains bearish. As projected, the XLF 15.32 level, and SPX 1347 told the story today.

The market bulls could not touch 1347 so they were out of gas. The XLF dropped under 15.32 favoring bearish financials and thus bearish markets but a happier face was placed as the session progressed, with the financials flipping back above 15.32 to join the bulls again. Financials are very erratic currently. The close today and for the week places the XLF exactly on top of the algorithm's number to determine bearishness or bullishness, 15.32. This will require close watching after Monday's opening bell.  Keybot the Quant is idling now and will print out a pre-scheduled number tomorrow after which we can set the road map for the week ahead. The SPX is now 21 points above where the algorithm went short at 1324, very uncharacteristic behavior for the program and testimony to the unstable markets at the mercy of the news wires.

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; 11:36 AM EST = +34; signal line is +25 but algorithm says stay short
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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