Monday, February 11, 2013


Keybot the Quant remains long as the new week of trading is underway.  UTIL is flat at 474.13 so the bulls rule remaining elevated above 469.78 and 468.12 (note the 50-week MA for $UTIL is moving up). The algo is now tracking copper, JJC 46.43, as a bull-bear line in the sand. JJC is now printing 46.97 fifty-four cents away. The markets are moving flat today. The SPX cannot yet move above 1518 to launch an upside acceleration and the low is no where near the 1509, yet, thus, sideways.  Interestingly, if UTIL falls under both levels shown, Keybot will likely flip short, also, if UTIL 469.78 is lost, and JJC 46.43 is lost, that would likely be enough for the algo to put on the bear suit. For now, the bulls continue driving the bus.

Note the lofty +79 reading, very high.  Keybot the Quant algorithm is an oscillator at its heart, so when the quant prints very low numbers, say -73 and lower, that signals oversold conditions and a market that is bottoming and ready to recover. Conversely, when the quant prints very high numbers, say +73 and higher, that signals overbot conditions and a market that is topping and ready to sell off. The RSI, MACD and stochastics are examples of other oscillators where overbot and oversold levels are used for analysis so view this discussion in a similar context.  The quant just printed +79, what does that tell you?  Here are three other hints.  In February-March 2012, the quant printed +76 which identified the market top.  In September 2012, Keybot printed +76 identifying the market top. In mid-November 2012, the quant printed -74 which identified the 11/15/12 market bottom. Well, what do you think?  Stay alert and guarded.  Markets appear to be far too elevated.

2/17/13; 7:00 PM EST =
2/15/13; 10:00 AM EST =
2/11/13; 9:37 AM EST = +79; signal line is +49
2/10/13; 7:00 PM EST = +63; signal line is +47

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.