Monday, October 24, 2011


Keybot the Quant is back on the long side but in these erratic markets it may not last long.  The algo did not print out any additional numbers today after the early action.  Volatility was the big story boosting the markets another step higher.

For tomorrow, the SPX starts at 1254; if 1257 is touched the market bulls will accelerate the buying once again, the indexes will move vertically several more handles in short order. If 1239 fails and a 1238 handle is touched, the large block sellers will enter in force and the indexes willd drop several additional handles.  A move thru 1240-1256 is sideways action ahead of the Merkozy EU Summit announcement on Wednesday. If VIX stays under 29.85, the market bulls are favored. If the VIX moves back above 29.85, then the market bears are making a run to send the markets lower. Keybot prints a pre-scheduled number at 10 AM tomorrow.

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 =
10/24/11; 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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