Thursday, February 23, 2012


Keybot the Quant remains long going into the Friday session. Today was a bull-bear standoff.  The algo was active yesterday but today simply idled along without printing any numbers. The algo is on the bull-bear line and the likely outcome will probably be determined by the bulls winning if UTIL 452.91 and higher is achieved, or, the bears winning, and Keybot perhaps flipping short, if JJC drops under 48 and heads lower.  Despite the higher finish for the broad indexes today, the weakness in the utilities sector can be viewed as very bearish for markets.

For the SPX, starting at 1363.46, only 15 measley cents under the 2011 closing high at 1363.61, the market bulls need to push the SPX up to touch 1364.25, if achieved, a bullish upside orgy will result. Since the move needed is less than a buck, the overnight futures are very important tonight.  If you see any green, the bulls are going to be in a happy mood tomorrow.  The market bears need to keep the futures red and push lower to touch 1352.25 after trading begins, if so, the downside will accelerate for the broad markets.  A move thru 1353-1363 is sideways action. 

The bull-bear standoff continues since UTIL cannot move above 352.91 and JJC cannot move below 48. The euro strength keeps the dollar low which keeps copper, JJC, elevated. In a nutshell, up euro favors the market bulls, down euro favors market bears. Markets remain unstable and complacent. Extreme caution is required. Keybot prints a pre-scheduled number tomorrow morning at 10 AM so the market action can be updated at that time.

2/26/12; 7:00 PM EST =
2/24/12; 10:00 AM EST =
2/22/12; 3:26 PM EST = +60; signal line is +60 but algorithm says stay long
2/22/12; 3:03 PM EST = +76; signal line is +60

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