Monday, October 10, 2011


Keybot the Quant remains long; the bulls came to play today.  The algo is comfortably long now 26 points above the signal line. The utes jumped up and over the UTIL 439 level befoe the closing bell which is market bullish.  The SPX:VIX ratio moved over 35 as well, so everything is going the bull's way.  The market bulls now have three sectors in their camp; utes, semi's and retail.

For the rally to have further legs, UTIL must maintain the 439 level, and the next sector to turn bullish, to further fuel the rally, should be the financials or volatility.  The XLF, now at 12.44, only needs eleven cents, 12.55, and this will turn financials bullish and push the indexes higher. Volatility, VIX, now at 33.02, only needs to drop to 29 to also turn bullish and push the indexes higher. All is not rosie, however, since today was a light volume holiday, and the NYAD closed at +2528, with an intraday print over +2600, which screams for a market reversal and give back day tomorrow.

For tomorrow for the SPX, the market bulls closed the index at the high so the only thing needed is green futures overnight and the indexes will move up after the opening bell again, with the SPX heading up and over 1200.  The market bears have lost control of the markets so their hope is to simply stall the upside move and that can be done by keeping the futures red and taking UTIL back under 439.

In a nutshell, for tomorrow, broad market direction will be dictated by UTIL 439 (currently market bullish at 440), XLF 12.55 (currently market bearish at 12.44) and VIX 29 (currently market bearish at 33).

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 =
10/10/11; 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%)

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