Thursday, January 12, 2012


Keybot the Quant remains long.  The algorithm printed out one number today just before lunch time. The spread between the algo number and the signal line is now 15 points so it is prudent to wave the caution flag again.  The broad markets are moving sideways in a narrow range each day so the tension is building and vigilance is required.

The Farm Report today slapped wheat and corn hard so the CRB dropped under the 310 level ushering in broad market weakness.  The retail sector drifted lower on weaker than expected sales data.  Copper, however, and technology, are strong providing ample support to the broad markets.

The SPX HOD today is 1296.82 and two days ago 1296.46. Jot the 1296.80 number on the back of an envelope for reference tomorrow.  If the SPX, starting at 1295.50, moves above 1296.80, an upside acceleration occurs and 1300 should print in front of the weekend.  The market bears need to push lower and lose the 1285 handle, if so, this will usher in large block selling and an acceleration lower.  The SPX would test the ctitical 1281 level in short order and a failure here leads to sustained market downside.  A move thru 1287-1295 is sideways action.  Note that the bulls have the wind at their backs only needing a point or two to ignite an upside party.  Therefore, watch the futures to see if any green shows.

1/15/12; 7:00 PM EST =
1/13/12; 10:00 AM EST =
1/12/12; 11:01 AM EST = +36; signal line is +21
1/11/12; 12:15 PM EST = +50; signal line is +20
1/11/12; 11:02 AM EST = +36; signal line is +20

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