Friday, November 25, 2011


Keybot the Quant is short as this Friday shortened-session begins. The algo picks up where Wednesday left off. The utes had collapsed, as well as the SPX:VIX ratio, ushering in the continued market weakness. Very short term, VST, indications hint that a market pop is at hand.

Watch UTIL 424.32, the 50-week MA level. UTIL is now below here which favors market bears. If UTIL pops above 424.32, that will provide measureable market buoyancy. Watch SPX:VIX ratio 35. The ratio is now below here at 34.19 which favors market bears. Over 35 would indicate that the market bulls are running higher.

Despite any pop that may occur in the markets for the VST, only time will tell if Keybot wants to flip to the long side, or not. Since the algo attempts to form as smooth a path as possible thru the entire trading year, the quant could very well remain short from the SPX 1247 entry for some time moving forward. Keybot deals in 0's and 1's so you never know. Watch to see if the algo number can recover from the current very low -72 reading, while at the same time enjoying the sled ride south on the short side.

11/30/11; 7:00 PM EST EOM =
11/29/11; 10:00 AM EST =
11/27/11; 7:00 PM EST =
11/23/11; 3:59 PM EST = -72; signal line is -33
11/23/11; 3:06 PM EST = -56; signal line is -30
11/23/11; 2:10 PM EST = -72; signal line is -28

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