Tuesday, January 31, 2012


Keybot the Quant is long but the algorithm, for the first time in three weeks, threatens to go short. The pre-scheduled number printed minutes ago. The algo number versus signal line relationship is tied at +48 but the significant digits in the program have opened the door to moving to the short side.  Other algorithm rules now take over and they have a couple loose ends that are not yet satisfied to allow the quant to go short.  Thus, we wait.  A turn appears imminent today or tomorrow but Keybot has a mind of its own and time will tell.

UTIL stays below 453, bearish.  The markets pivoted to the downside at 10 AM on the weak Consumer Confidence data.  At the open, the SPX took out 1316 so the acceleration skyward occurred as forecasted in last nights missive. The broad indexes have weakened today and the tell early on was that tech, the Nasdaq, is not leading the upside, a sea change compared to the month of January thus far. CRB is sporting a 315 handle remaining five points above danger. CRB at 310 would more than likely guarantee Keybot to go short.

The SPX:VIX ratio just lost the 68 level which signals a large down day on tap today, if the ratio stays under 68.  Stay on guard and cautious. Markets are unstable.

2/5/12; 7:00 PM EST =
2/3/12; 9:00 AM EST =
1/31/12; 7:00 PM EST EOM =
1/31/12; 10:00 AM EST = +48; signal line is +48 but algorithm says stay long
1/30/12; 9:30 AM EST = +48; signal line is +48

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