Wednesday, December 21, 2011


Keybot the Quant is long but the algo clicked off a number after the open wanting to whipsaw back to the short side already.  Other programming rules, however, are holding the quant back for now, so the bullish call remains albeit with a caution flag out.  If the SPX would drop down towards 1227-ish area, that would have potential for Keybot to flip back to the short side. The financials, XLF, failed a few minutes after the open and remain sub 12.70. This is market bearish and causing today's broad market weakness.

The retail sector, RTH, is holding well above the danger level of 109.40, so the market bulls are receiving upwards buoyancy.  The utilities, UTIL, are remaining elevated as well which also helps the markets remain buoyant. The broad markets should exhibit limited downside unless RTH loses the 109.40 level, then significant selling will appear If the XLF can regain 12.70 and higher, the broad markets will noticeably recover to the upside.

1/1/12; 7:00 PM EST EOM EOQ4 EOY2011 =
12/27/11; 10:00 AM EST =
12/25/11; 7:00 PM EST =
12/22/11; 10:00 AM EST =
12/21/11; 9:35 AM EST = -26; signal line is -19 but algorithm says stay long
12/20/11; 2:49 PM EST = -10; signal line is -17; go long 1240; (Benchmark SPX for 2011=-1.4%)(Keybot this trade=-0.5%; Keybot for 2011=+31.2%)(Actual this trade via RWM=-1.5%; Actual for 2011=+35.5%)

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