Thursday, February 21, 2013


Keybot the Quant is short after two months of pure non-stop upside.  The bearish move may be quickly negated tomorrow unless the bears keep pushing.  VIX 15.74 is key; bears need to push volatility back above this level, otherwise, the bulls will move the broad indexes higher.  Other sectors and levels to watch are GTX 4927, RTH 45.50, and interestingly, SOX 409. Semiconductors are now back on the radar screen after their collapse today. If the bulls can keep all four parameters bullish, the markets will rise.  If the bears touch any of the levels above, the downside will accelerate in force.

For the SPX starting at 1502, the bulls need to push through the 1512-1513 level, if so, the upside will accelerate further. Keybot will likely whipsaw back to the long side if the 1512-1513 level is achieved.  The bears need to push the SPX under 1497 and the downside will accelerate. A move through 1498-1511 is sideways action. VIX 15.74 will tell you a lot at the opening bell. The bears are driving the bus but the bulls are already fighting to regain control. Stay alert. Markets remain very unstable.

2/24/13; 7:00 PM EST =
2/21/13; 3:04 PM EST = +63; signal line is +60 but algorithm says stay short
2/21/13; 2:08 PM EST = +47; signal line is +59; go short 1498; (Benchmark SPX for 2013  = +5.1%)(Keybot this trade = +5.1%; Keybot for 2013 = +5.1%)(Actual this trade = +5.8%; Actual for 2013 = +5.8%)

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