Thursday, January 26, 2012


Keybot the Quant remains long as Chairman Bernanke throws money around like confetti. The Fed announced that low rates will remain into late 2014, a change from the existing wording that targeted low rates to mid 2013.  The dollar plummets and commodities, copper and equities sky rocket higher. The euro moves up with the equities markets.

The bulls are in control. Earnings are reporting in-line, based on the lower estimates, the pre-announcement season was the worst in several quarters, so the bar that companies have to jump over is laying on the floor.  The algorithm shows the markets to be very bullish and resilient. Note that the algo has not printed a number since the opening bell on Monday morning. This lull typically ends in a flutter of activity at some point so extreme caution is required. Keybot prints a pre-scheduled number tomorrow morning.

For the SPX today, starting at 1326, if the market bulls can punch up thru 1328.30, the upside will roar to life once again, and another bull party will accelerate the buying.  The bears are simply trying to stop the bleeding today and slow the upside momo since a move under 1308 is needed to usher in negativity, a formidable task. A move thru 1309-1327 is sideways action.

1/29/12; 7:00 PM EST =
1/27/12; 10:00 AM EST =
1/23/12; 9:33 AM EST = +64; signal line is +43
1/23/12; 9:21 AM EST = +50; signal line is +41

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