Saturday, February 11, 2012


Keybot the Quant remains long.  The algorithm did not print any numbers during the whole week.  This behavior verifies the sideways texture of the markets currently. The market bears are at an advantage to start next week with the utilities, UTIL, finishing under 451.17. Since the CRB did not lose the 310.50 level, now at 312.14, the market bulls were able to slide the markets sideways into the weekend and stop any significant downside.

Volatilty jumped to life late last week, the VIX now at 21. If VIX 26 is achieved the market bears will be selling the indexes substantially. Copper, JJC, will regain in importance next week as well. The JJC 48 level is of interest to Keybot currently, and if lost, the broad markets will experience strong selling.

Next week can be laid out in more detail tomorrow after the pre-scheduled Sunday print. The algorithm has been sleepy, simply idling along with no change for about 10 trading days now, staying steadily on the bull side, but now very close, only a single hair away from going to the short side.  UTIL, CRB, VIX and JJC will require close monitoring as trading begins Monday. Markets remain highly unstable, extreme caution is required. 

2/19/12; 7:00 PM EST =
2/16/12; 9:00 AM =
2/12/12; 7:00 PM EST =
2/10/12; 10:00 AM EST = +48; signal line is +49 but algorithm says stay long
2/5/12; 7:00 PM EST = +48; signal line is +49 but algorithm says stay long


  1. where is the real time Keystone SPX:VIX ratio published?

  2. Hello Phairrick, it is nothing fancy, you can watch the chart print in real time with any charting service, it is simply the ratio of the SPX to the VIX. Try out, simply type in $SPX:$VIX into the 'Symbol' box, and the chart will come right up. As the trading day moves along, simply reference the chart and it will give you the number in real-time.

    On stockcharts, and other charting services, place a '$' symbol in front of the indexes' ticker to bring the chart up. IOW, you do not type in SPX, you type in $SPX to bring up the SPX chart, thus, for the SPX:VIX ratio, you must type $SPX:$VIX. So it is very simple. For Yahoo Finance site, they use a carrot symbol instead of a dollar sign, to bring up the indexes, for example you would type in ^SPX.

    As Monday's trading begins, watch the ratio closely, if it shoots up above 68, that means the market bulls have recovered and the bears did not have any downside strength. But, once the ratio drops back under 68 again, and it will at some point, that signals a large down day on Wall Street and the bears regaining control.

    Of course, if the ratio stays under 68 as it is now after the bell rings on Monday, the market bears will be feeling pretty darn good and will start to push the broad markets lower.


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