Tuesday, September 20, 2011


The algo remains long to start the Tuesday trade. Housing Starts are in the tank still yet falling 5% last month. Keybot the Quant continues to show that the housing market has fallen back into a double dip as of mid-May. For today, the SPX:VIX ratio is above 35 so the market bulls are in control.

Continue watching the three key sectors that led this recovery rally; socks, retail and utes. The SOX, now at 377.49 needs to stay above 368.50 for the bullish market fun to continue. Retail, the RTH, now at 107.84, needs to maintain its three point height above the 104.70 level. If so, the market bulls will continue to keep the indexes buoyant. UTIL, now at 438-ish, is comfortably 14 points above the critical 423-424 level for this week thus far so the market bulls have another feather in their caps.

For the SPX, if the market bulls touch the 1215 handle, the buyers will enter in force and send markets much higher. The SPX begins at 1204 support, spending late yesterday bouncing between the key S/R of 1204 and 1209-1210. The market bears need to move the SPX down to 1188-1189 to accelerate the selling and regain control of the markets. A move thru 1190-1214 is sideways slop. Markets remain at the mercy of Euro news, as well as the Fed's Operation Twist stategy decision.

10/7/11; 10:00 AM EST =
10/2/11; 7:00 PM EST EOM =
9/30/11; 10:00 AM EST =
9/27/11; 10:00 AM EST =
9/25/11; 7:00 PM EST =
9/20/11; 9:00 AM EST = -24
9/18/11; 7:00 PM EST = -24
9/16/11; 10:00 AM EST = -24
9/14/11; 12:43 PM EST = -24
9/14/11; 12:39 PM EST = -40; signal line is -58; go long 1180; (Benchmark SPX for 2011=-6.2%)(Keybot this trade=+0.5%; Keybot for 2011=+26.4%)(Actual this trade via SH=+0.4%; Actual for 2011=+39.7%)

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