Tuesday, January 3, 2012


Keybot the Quant remains long after a bullish day of trading to begin 2012. The algo starts the year with an extremely active session, printing nine numbers today. Semiconductors and copper created the bulk of the bull fuel today.  The SPX gained the 12-month MA to try and revese a five-month secular bearish trend, but, by the close, could not stay above the moving average giving the bears a small victory amongst today's bull orgy.

SOX closed dead-on the algo's number of interest at 368.60.  How do you like that? For Wednesday, the SOX will continue to create broad market buoyancy unless it loses the 368.00 level.  Copper was up 3% today and will continue to support the market bulls as long as JJC stays above 44.75.  The commodities, CRB, will be of major interest first thing in the morning. The CRB is at 313.37.  The algorithm is interested in the 315.00 level. Thus, if the CRB moves above 315, the markets will rally big-time to the upside, the wine will flow like water.  If CRB stays under 315, it tells you that the market bulls do not have much juice.

For the SPX for Wednesday, starting at 1277, if the market bulls can push upwards to touch the 1285 handle, the upside will explode higher. The CRB will likely be over 315 and an upside party will be in full force for the broad indexes.  The market bears need to push back down to the starting year number at 1258, retracing today's move of 19 points, to regain negative momo. This is a formidable task so the bears will simply try to prevent CRB from printing 315 and at the same time drive JJC and SOX lower.  A move thru SPX 1260-1283 is sideways action.

Stay on guard. The caution flag is not out but vigilance is required.  The algo clicked off nine numbers and sometimes an active day like this indicates instability and a market that is ready to change trend.

1/8/12; 7:00 PM EST =
1/6/12; 9:00 AM EST =
1/3/12; 3:22 PM EST = +22; signal line is -4
1/3/12; 2:42 PM EST = +36; signal line is -6
1/3/12; 12:59 PM EST = +22; signal line is -8
1/3/12; 12:48 PM EST = +6; signal line is -10
1/3/12; 12:30 PM EST = +22; signal line is -11
1/3/12; 10:00 AM EST = +36; signal line is -14
1/3/12; 9:46 AM EST = +22; signal line is -16
1/3/12; 9:36 AM EST = +36; signal line is -17
1/3/12; 9:30 AM EST = +22; signal line is -19
1/1/12; 7:00 PM EST Starting 2012 Data = -10; signal line is -20
1/1/12; Begin 2012 Data Set = -10; signal line is -20; go long 1258; (Benchmark SPX for 2012  = 0%)(Keybot this trade = 0%; Keybot for 2012 = 0%)(Actual this trade = 0%; Actual for 2012 = 0%)

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