Wednesday, March 14, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long thru yesterday's melt-up move and into the Wednesday session today. The bombshell surprise with the release of bank stress test results two days ahead of time, JPM and BAC catapulting late day equities markets higher with the SPX exploding into the 1390's. The algorithm simply idled along all day on the long side without printing any numbers thus far this week.

The nearest risk to the rally is shown by commodities; watch CRB 313 but price is at 318 comfortably above. Also, the dollar and commodities are moving together the last few days so the stronger dollar has not slapped back commodities, at least for now.  Utilites also exploded higher, UTIL now at 461 handily above the 444 danger level for this week.  So, the bulls are cruising.

For the SPX today, starting at 1396, the market bulls are in good shape to move the broad markets higher since they closed them at the highs yesterday.  Thus, any hint of green futures should launch another move higher with a test of the 1400 psychological level next. The market bears will simply try to stop the upside momo.  Yesterday's move would need to be retraced for the bears to regain strong negativity.  A move thru 1373-1395 is sideways action today.  Markets remain unstable, stay alert and cautious, the broad indexes can turn on a dime and yesterday simply pulled forward what would have been a Friday rally. Current markets are not to be trusted. Keybot remains long. 

3/18/12; 7:00 PM EST =
3/16/12; 10:00 AM EST =
3/11/12; 7:00 PM EST = +76; signal line is +67
3/9/12; 9:00 AM EST = +76; signal line is +66
3/8/12; 12:04 PM EST = +76; signal line is +66; go long 1364; (Benchmark SPX for 2012  = +8.4%)(Keybot this trade = -1.6%; Keybot for 2012 = +3.1%)(Actual this trade = -1.6%; Actual for 2012 = +5.8%)

No comments:

Post a Comment

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