Friday, December 21, 2012


Keybot the Quant is short going into the Friday session and did not print any further numbers yesterday after flipping to the bear side.  Copper collapsed into the bear camp causing market negativity. Volatility is higher as well. Keybot continues to track VIX 15.90 as a bull-bear line in the sand. Watch UTIL 465.82, now at 460.14, contributing bearishly to markets. Watch RTH 44.50, now at 45.20 contributing bullishly to markets. Financials are the main driver of the recent rally especially the upside orgy this week.  Watch XLF 15.83, now at 16.70 contributing bullishly to markets.

For the SPX starting at 1444, the bulls only need to see a smidge of positivity in the futures to ignite an upside acceleration. However, the failure of the Plan B vote last evening in the House of Representatives at 8 PM EST has sent the futures, and global markets, into a tizzy. The bears need need to drop under 1433 to create a downside acceleration and that appears easily on tap with the S&P's down 20 as this is typed five hours before the opening bell. An interesting day is on tap. Keybot prints a pre-scheduled number at 10 AM so the market action can be updated at that time.

12/23/12; 7:00 PM EST =
12/21/12; 10:00 AM EST =
12/20/12; 9:44 AM EST = +1; signal line is +14; go short 1435; (Benchmark SPX for 2012 = +14.1%)(Keybot this trade = +0.6%; Keybot for 2012 = +20.8%)(Actual this trade = +0.1%; Actual for 2012 = +18.1%)

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