Wednesday, October 12, 2011

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot remains on the long side and motored along yesterday without printing any numbers after the opening print. The algo is currently scanning several key sectors; utes, semi's, financials and volatility.  UTIL is under 439 favoring bears. If 439 is achieved, the broad markets will run higher.

The semiconductors were the main fuel this week for the markets.  SOX remains elevated, like the retail sector, so these two started the bullish fun and they remain bullish. Financials and volatility will tell the tale on the broad market direction in the days ahead. XLF needs 12.55 to signal the all clear for another leg up in the markets, last print is 12.43, so watch this very closely today. Volatility, VIX, is at 32.86, and it needs to see sub 29 to create further fuel to take the markets higher.

Thus, the key today is UTIL 439, XLF 12.55 and VIX 29. If any of these three attain the levels shown (above 439 for UTIL or 12.55 for XLF; below 29 for VIX), the markets will be running strongly upwards, the SPX will be over 1200 and heading higher. If none of these three levels can be realized today, then the market bears are still in the game pushing back.

10/31/11; 7:00 PM EST EOM =
10/30/11; 7:00 PM EST =
10/28/11; 10:00 AM EST =
10/25/11; 10:00 AM EST =
10/23/11; 7:00 PM EST =
10/19/11; 9:00 AM EST =
10/16/11; 7:00 PM EST =
10/14/11; 10:00 AM EST =
10/11/11; 9:30 AM EST = -40; signal line is -50
10/10/11; 3:54 PM EST = -24; signal line is -50
10/10/11; 9:30 AM EST = -40; signal line is -50
10/9/11; 7:00 PM EST = -40; signal line is -50
10/7/11; 3:40 PM EST = -40; signal line is -51
10/7/11; 3:22 PM EST = -28
10/7/11; 9:00 AM EST = -40; signal line is -52
10/6/11; 10:21 AM EST = -40; signal line is -53; go long 1146; (Benchmark SPX for 2011=-8.9%)(Keybot this trade=+0.0%; Keybot for 2011=+23.9%)(Actual this trade via DOG=+0.3%; Actual for 2011=+35.5%)

2 comments:

  1. TLT? Not much of a comment? Daily and weekly charts clearly show the negative divergence in place that created the smack down eight days ago; so short was the play.

    ReplyDelete

Note: Only a member of this blog may post a comment.