Wednesday, December 21, 2011


Keybot the Quant is long.  A whipsaw did not occur today although this morning's action was weak.  The RTH stayed well above 109.40, closing at 112, indicating all day that the market downside would be limited.  This afternoon the financials, XLF, regained the 12.71 level so that signaled another upside bull partyKeep watching XLF 12.71 to indicate broad market direction, it's supporting the market bulls now closing at 12.79.

For the SPX on Thursday, starting at 1244 with a hanging man candle, if the market bulls can push higher to touch 1245, the buyers will enter in force and another bullish orgy will take place.  Thus, the market bears will try with all their might to keep futures red in the overnight session. The market bears need to push under 1230 to restart the negativity they enjoyed this morning. A move thru 1231-1244 is sideways action. Markets are typically buoyant the two days in front of a three-day holiday weekend.

Keybot prints out a pre-scheduled number in the morning, a half hour after the open, so the market action can be updated at that time. Watch XLF 12.71 and SPX 1245.

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; 2:36 PM EST = -10; signal line is -20
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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