Sunday, December 16, 2012


Keybot the Quant is long to begin the new trading week. The algo continues to track three key sectors that are most greatly impacting market movement; VIX 15.80, RTH 44.35 and XLF 15.77. Volatility is contributing bearishly to markets while retail and financials are causing market bullishness. Any change to these three parameters will push markets in the same respective direction.  Semiconductors and copper may become more important as the week progresses.

For the SPX for Monday, the bulls need to push up thru 1419.50 and an upside acceleration will occur.  The bears need to push under 1412 and a downside acceleration will occur. A move thru 1413-1418 is sideways action. Markets remain extremely unstable, extreme caution is warranted. If either the RTH or XLF turns bearish as described above, and the SPX drops under 1412 heading lower, Keybot will likely flip short, otherwise, the bulls will continue driving the bus. Keybot prints one pre-scheduled number on Wednesday and one on Friday this week.

12/23/12; 7:00 PM EST =
12/21/12; 10:00 AM EST =
12/19/12; 9:00 AM EST =
12/16/12; 7:00 PM EST = +17; signal line is +16
12/12/12; 3:28 PM EST = +17; signal line is +16

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