Tuesday, March 20, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long since the market bears could not get the job done today.  Utilites, UTIL, was the main focus of the quant as today's trading began, but UTIL actually gained a point and remained on the bull side positively effecting markets all day long.  The surprise today was the drastic drop in copper.  JJC dropped down to come within a hair of causing the algorithm to flip to the short side.  The levels of interest are continuously recalculated in real-time by the robot with the current danger level for JJC now at 48.90. The bears could not push the last few pennies to usher in serious broad market weakness.  For Wednesday, watch JJC 48.90, price begins at 49.27. The bears need 37 cents lower to initiate market mayhem otherwise the bulls continue to cruise.

The CRB is at 315.53 and if it drops three points to move under 312.50 that would also signal serious broad market trouble.  Both commodities and copper will only move lower if the dollar strengthens. For the SPX in the Wednesday trade, starting at 1405.52, the market bulls need to touch 1409.50 to accelerate the broad markets another leg higher.  The bears need to lose the 1398 handle if they want to ignite negativity in the markets.  A move thru 1399-1408 is sideways action.   The dollar will tell the story. Also watch UTIL 447 for the remainder of the week which will also usher in significant broad market weakness.  Thus, the market bears need either UTIL 447, JJC 48.90 or CRB 312.50, otherwise, the bulls remain in control. Markets remain unstable and are not to be trusted.  Extreme caution is required.

3/25/12; 7:00 PM EST =
3/20/12; 9:00 AM EST = +76; signal line is +68
3/18/12; 7:00 PM EST = +76; signal line is +67
3/16/12; 10:00 AM EST = +76; signal line is +67

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