Wednesday, November 9, 2011


Keybot the Quant remains short in these fast-moving markets.  VIX moved above 30.50 at the open which was an immediate signal that the bears were growling strongly.  SPX lost the 1257-1258 support, then 1255, then tried to hang on to 1242. Once the financials rolled over and failed at 2 PM, the broad markets fate was determined.  Also, the SPX:VIX ratio crossed under 35 which verifies that t a large down day is on tap.  Markets should remain bearish as long as the ratio stays sub 35.

For Thursday for the SPX, starting at 1229.10, if the 1227 level is lost and the SPX starts printing a 1226 handle, the selling will accelerate again. The quant is most focused on two sectors; financials and semi's, XLF and SOX, respectively. XLF closed at 12.87, under the 13.00 level (market bearish). SOX closed at 375.04, remaining above the 374.65 level (market bullish). If the market bears want to take another leg down towards SPX 1200, SOX will need to fail the 374.65 level.  If the market bulls want to stop the bleeding and stabilize the indexes, they must push the XLF back above 13.00.

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; 2:04 PM EST = -24; signal line is +5
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%)

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