Wednesday, January 18, 2012


Keybot the Quant remains long after another phenomenal day for the market bulls.  Just when you think the bulls are packing it in another move higher occurs in the broad indexes. There were few shorts to begin with today and the boost in price the last five minutes hint that some of those capitulated at the close. The CRB will tell you first thing in the morning if the bulls will continue the rally.  If the CRB 311.50 level gives way to the upside then the bulls will run further.  The market bears need to keep the CRB under 311.50 if they plan on fighting back.

For the SPX, starting at 1308, the bulls have the easy road, all they need to see is green futures and Thursday will provide another bull party. If the futures are red, the bears will be thrown a bone.  Market bears have to move the SPX back down to 1291 and lower to get the negative momo back. This is 17 handles lower, a formidable task.  A move thru 1292-1307 is sideways action.

Keybot prints a pre-scheduled number at 9 AM so the day's trading levels can be fine tuned at that time.  The algorithm floats along on the bull side since SPX 1240 back on 12/20/11, now 68 handles to the good side. Caution is warranted, these markets are highly unstable.  Expect the unexpected at anytime.

1/22/12; 7:00 PM EST =
1/19/12; 9:00 AM EST =
1/18/12; 9:50 AM EST = +50; signal line is +29
1/18/12; 8:45 AM EST = +36; signal line is +26
1/18/12; 8:00 AM EST = +50; signal line is +25
1/17/12; 2:35 PM EST = +36; signal line is +23

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