Saturday, March 24, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the smoke clears over the weekend. Copper, JJC, was the key sector that collapsed during the week causing the algorithm to move to the short side.  Commodities, CRB, followed along lower but utilities, UTIL, remained elevated.  These are the three sectors of most interest to Keybot currently.  A reverse occurred in the Friday session with CRB recovering early morning then copper moved back to the bull camp as well before lunch time.  This places the quant in the position that it wants to go long, as evidenced by the algo number above the signal line, but other programming rules are holding it back.

Interestingly, JJC is sitting directly on top of the level of interest continuously calculated by the quant--48.83, neither tipping its hand for bulls or bears; it wants to wait for Monday's bell to decide. This sets up high drama since the broad indexes will move in the same direction that copper moves as the new week begins.  The quant is idling over the weekend and will print Sunday's pre-scheduled number tomorrow.  At that time the levels of interest and specific SPX levels can be targeted for, what appears to be, a dramatic Monday morning setting up.

3/25/12; 7:00 PM EST =
3/23/12; 10:59 AM EST = +76; signal line is +63 but algorithm says stay short
3/23/12; 8:00 AM EST = +60; signal line is +63
3/22/12; 12:13 PM EST = +46; signal line is +63

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.