Thursday, December 1, 2011


Keybot the Quant remains long. Gauge the sustainability of the bulls by watching XLF, SOX and JJC representing financials, semi's and copper. All three are supporting the bull case to start the day.  The extent by which one, two or all three return to the bear camp today, or perhaps they all remain in the bull camp, will dictate broad market direction.

XLF is now at 12.81, watch 12.73.  SOX is now at 373.32, watch 370.50.  JJC, a proxy for copper, is at 46.00, watch 45.25. If these respective tickers stay above the levels shown, as they are now, the market bulls continue along with the upside party with no worries. If one or two fail their levels, that would represent some give back which would fully be expected considering the huge move yesterday.

If all three move back to the bear camp, as would be signaled if they all lose the levels shown, that would show that the coordinated intervention by the central bankers yesterday was simply a flash in the pan. The middle scenario is most likely with one or two of the three moving back to the bear side but overall, the algorithm should remain bullish and favor market buoyancy. Keybot prints a pre-scheduled number tomorrow morning.

12/4/11; 7:00 PM EST =
12/2/11; 9:00 AM EST =
11/30/11; 7:00 PM EST EOM = +22; signal line is -37
11/30/11; 3:36 PM EST = +22; signal line is -40
11/30/11; 3:11 PM EST = +6; signal line is -42
11/30/11; 1:14 PM EST = -10; signal line is -44
11/30/11; 12:54 PM EST = +6; signal line is -44

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