Monday, February 25, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips back to the bear side at SPX 1502. It is very rare for the algorithm to flip twice in one day. It's easy to see that today was a special market day.  The huge jump in volatility caused the mayhem, the VIX is up 34% today. The bears are fine as long as the VIX stays above 15.60. The retail sector crumbled into the close adding additional bear fuel. The erratic market behavior will probably continue. Keybot took a second loss today exiting SPY and entering SH. The set up for markets tomorrow can be studied after the dust clears. Keybot prints a pre-scheduled number tomorrow morning.

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 =
2/25/13; 3:59 PM EST = +31; signal line is +61
2/25/13; 3:20 PM EST = +47; signal line is +62; go short 1502; (Benchmark SPX for 2013  = +5.3%)(Keybot this trade = -1.3%; Keybot for 2013 = +2.2%)(Actual this trade = -1.5%; Actual for 2013 = +1.0%)
2/25/13; 1:40 PM EST = +47; signal line is +62 but algorithm says stay long
2/25/13; 9:30 AM EST = +63; signal line is +62; go long 1522; (Benchmark SPX for 2013  = +6.7%)(Keybot this trade = -1.6%; Keybot for 2013 = +3.5%)(Actual this trade = -3.3%; Actual for 2013 = +2.5%)

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