Thursday, November 3, 2011


Keybot the Quant remains short to start the Thursday session.  The algo has been short for two days with no whipsaw occurring. The quant simply idled along yesterday without clicking off any additional numbers after the print at the opening bell.

Financials jumped back into the bull camp yesterday and pushed the markets higher. This allows the four sector pillars to continue to support the bullish side of the markets; utilities, semiconductors, retail and financials. Thus, if the markets want to move lower today, watch for any weakness in these four sectors If the markets want to push higher today, that would be accomplished by either boosting copper price higher or pushing volatility lower.

Here are some actual numbers the quant is now scanning: UTIL 439.23; SOX 371.70; RTH 107.50; XLF 12.95; JJC 46.75; VIX 30.00.  Thus, if price fails thru any of the first four listed, the broad markets will be selling off and tracking lower.  If price moves above JJC 46.75, or below VIX 30.00, then the large block buyers will be in the broad markets and the indexes will be moving upwards.  If the current status remains, the markets idle along sideways.

For the SPX today, starting at 1237.90, if the market bulls push higher, and touch 1242.50, about 4 or 5 bucks higher, the buyers will throw a party, the indexes will launch upwards several more handles in short order.  If the market bears push the SPX lower to lose the 1220 handle, critical support, about 18 points lower, the large block sellers will slap the indexes much lower and the market bears will have a field day. A move thru 1221-1241 is sideways action.

Stay on guard as this wild week hits high gear with the ECB rate decision and conference shortly, the Greek tragedy in progress, the G20 Summit and the Jobs Report tomorrow morning.

11/20/11; 7:00 PM EST =
11/17/11; 9:00 AM EST =
11/13/11; 7:00 PM EST =
11/6/11; 7:00 PM EST =
11/4/11; 9:00 AM EST =
11/2/11; 9:30 AM EST = -8; signal line is +1
11/1/11; 3:46 PM EST = -24; signal line is +1
11/1/11; 9:30 AM EST = -8; signal line is 0; go short 1233; (Benchmark SPX for 2011=-2.0%)(Keybot this trade=-0.4%; Keybot for 2011=+26.0%)(Actual this trade via DIA=-0.9%; Actual for 2011=+35.6%)

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