Wednesday, November 9, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips back to the short side at the open; the whipsaw occurred. In these jumpy markets watch for a whipsaw back again over the next day or two, even today. The algo was flat on the move over the last day but the actual trade lost a couple percent in this market volatility.

The VIX leaped over 30.50, the current level that the quant is monitoring, now printing 31.63, so the market bears are strongly in the game today.  The algo is now shifting towards financials.  Watch XLF 13 level, now printing 13.16, the LOD. If you see the XLF drop under 13, the broad markets will take another strong leg south.

Stay on guard, these markets are very unpredictable, a whipsaw back up again is not out of the question. To reduce risk, the algorithm is now trading the single ETF's again. 

11/30/11; 7:00 PM EST EOM =
11/29/11; 10:00 AM EST =
11/27/11; 7:00 PM EST =
11/25/11; 10:00 AM EST =
11/20/11; 7:00 PM EST =
11/17/11; 9:00 AM EST =
11/13/11; 7:00 PM EST =
11/11/11; 10:00 AM EST =
11/9/11; 9:30 AM EST = -8; signal line is +6; go short 1260; (Benchmark SPX for 2011=+0.2%)(Keybot this trade=-0.1%; Keybot for 2011=+23.6%)(Actual this trade via SSO=-2.1%; Actual for 2011=+29.9%)
11/8/11; 9:30 AM EST = +6; signal line is +5; go long 1261; (Benchmark SPX for 2011=+0.2%)(Keybot this trade=-2.3%; Keybot for 2011=+23.7%)(Actual this trade via SH=-3.6%; Actual for 2011=+32.0%)

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