Sunday, February 24, 2013


Keybot the Quant is short going into the Monday opening bell but a whipsaw back to the long side is anticipated. The algo would not latch as price moved up Friday but should click in to flip long tomorrow and log a loss for the move.  Note however, how the bulls and bears are on a fine line, the algo number and signal line are on top of each other at 62-63, so a move either way can occur right now. The markets remain very indecisive, erratic and unstable. Watch GTX 4927, VIX 15.70 and RTH 45.50 for clues (all three are contributing bullishly to markets currently).  RTH will be greatly affected by the retail earnings reports this week. The China Flash PMI this evening at 8:45 PM EST is key. The data will immediately push copper and commodities one way or the other and this may determine broad market direction into Tuesday.

For the SPX starting at 1516, closing at the highs on Friday after the Fed's Bullard created a large money-pumping day, the bulls only need a smidge of positivity in the futures overnight and the upside will run higher to test the 1520 resistance in a heartbeat. The bears need to retrace Friday's move and push under 1503 to regain mojo, a formidable task but not impossible. A move through 1504-1515 is sideways action. Three pre-scheduled numbers print this week. An active week is anticipated for the algo and even if Keybot flips long tomorrow stay alert because a whipsaw back to the short side would not be unreasonable.

3/3/13; 7:00 PM EST =
3/1/13; 10:00 AM EST =
2/28/13; 7:00 PM EST EOM =
2/26/13; 10:00 AM EST =
2/24/13; 7:00 PM EST = +63; signal line is +62 but algorithm says stay short
2/21/13; 3:04 PM EST = +63; signal line is +60 but algorithm says stay short

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