Thursday, October 27, 2011


Keybot the Quant remains long. Big run-up today on the happy Euro news. Volatility dropped like a stone launching the broad markets, copper moved higher further bolstering the move up and the SPX crossed important upside levels as well locking in the bull move.

To gauge the continued strength of the broad market move, watch copper, JJC, now at 48.02. If JJC remains above 46.75, the market buoyancy will continue. Market bears need to push JJC under 46.75.  For the bulls to continue the move upwards, the CRB, now at 324.27, must participate and needs to cross up thru 327.90. For the SPX tomorrow, starting at 1285, the market bulls need to touch the 1293 handle, if so the markets will launch another step higher.

Last night at this time the outcome of the EU Summit was unknown and traders feared the worse. With the huge opening spike today you had to be long before the bell this morning to take the bull ride; the SPX launched over 30 handles in the first four minutes, then another 10 handles for the remainder of the day into the closing bell, thus, 3/4ths of the move occurred in the first four minutes today. Watch JJC and CRB as described above to determine Friday's direction.

10/31/11; 7:00 PM EST EOM =
10/30/11; 7:00 PM EST =
10/28/11; 10:00 AM EST =
10/27/11; 11:59 AM EST = +36; signal line is -13
10/27/11; 9:30 AM EST = +22; signal line is -15
10/26/11; 3:59 PM EST = +6; signal line is -17
10/26/11; 3:47 PM EST = -8; signal line is -18
10/26/11; 3:31 PM EST = +6; signal line is -18
10/25/11; 10:00 AM EST = -8; signal line is -20
10/25/11; 9:30 AM EST = -8; signal line is -20
10/24/11; 10:34 AM EST = +6; signal line is -21
10/24/11; 9:30 AM EST = -8; signal line is -23; go long 1238; (Benchmark SPX for 2011=-1.6%)(Keybot this trade=-2.7%; Keybot for 2011=+26.4%)(Actual this trade via MYY=-3.8%; Actual for 2011=+36.5%)

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