Sunday, February 19, 2012


Keybot the Quant begins the new week on Tuesday morning on the long side. The China easing news and Greece developments should boost commodities, emerging markets and equities markets higher but the remains a day away, and a lot can happen over the next day.  Watch the utilities, UTIL, 452.91. The market bulls need to push above this number to sustain market upside.  Likewise, copper is important, especially in the light of the China easing. Watch JJC 47.60; the bulls need to remain above and the market bears will try to push under this level. The China triple R easing was anticipated for a month or more so it will be interesting to see how much of it was priced into markets, or not.

For the SPX, starting at 1361, the market bulls need to push thru the closing high from 2011 at 1363.61 and that would set off a firestorm of upside buying with the SPX heading higher to potentially test the 1370-1371 area, which is the intraday HOD from 2011. The market bears need to push the SPX under 1357 and the selling will noticeably increase. A move thru 1358-1362 is sideways action.

Markets remain highly unstable. If UTIL stays under 452.91 and JJC weakens, Keybot will likely flip to the short side. There is only one pre-scheduled number this week that prints on Friday morning. For now, Keybot idles along on the long side.

2/26/12; 7:00 PM EST =
2/24/12; 10:00 AM EST =
2/19/12; 7:00 PM EST = +76; signal line is +55
2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

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