Tuesday, February 21, 2012


Keybot the Quant is long to start the new week of trading and active printing out two numbers for the week thus far.  The utilities sector is dancing above and below the critical 492.91 level for this week.  In a nutshell, if you are bullish, you want UTIL to get above 452.91 and stay there all week, this will provide broad market buoyancy.

If you are bearish, you want UTIL to stay under 452.91 all week long and in addition, JJC to drop under 46.90 (remember the algo is constantly calculating these numbers so they change slightly as time moves along). This action would get the bear party started.  The SPX moved up thru the 2011 closing high at 1363.61 and is now at 1366, so a test at 2011's intraday high at 1370-1371 may be on tap.

Note that the algo was actually within five points of the signal line minutes ago. Keybot is on the bull side currently but the relationship is tenuous. UTIL and JJC are key.

2/26/12; 7:00 PM EST =
2/24/12; 10:00 AM EST =
2/21/12; 10:42 AM EST = +76; signal line is +57
2/21/12; 9:48 AM EST = +60; signal line is +55
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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