Sunday, March 17, 2013


Keybot the Quant is long going into the new week of trading. The algo is flat-lining for the last few days, neither bulls or bears pushing hard either way, so the broad indexes float along sideways with an upward bias. VIX 15.15 is key, now at 11.30 creating market bullishness. GTX 4930 is key, now at 4896 creating market negativity. Semiconductors are creating market bullishness with the SOX at 434 well above the bull-bear line at 421 but the action in semi's may prove interesting this week.

For the SPX starting the week at 1561, printing highs day after day, the bulls need to touch the 1564 handle and it is off to the races, the all-time closing high at 1565 would immediately crumble, and the trek to the all-time high at 1576 would be underway. The bears need to push under 1556 to accelerate the downside to 1553 and 1548 support levels. A move through 1557-1560 is sideways action. Keybot prints one pre-scheduled number this week on Tuesday morning. The markets remain highly erratic, unstable and are not to be trusted. Expect the unexpected this week. For now, the bulls are cruising.

3/24/13; 7:00 PM EST =
3/19/13; 9:00 AM EST =
3/17/13; 7:00 PM EST = +49; signal line is +42
3/15/13; 10:00 AM EST = +49; signal line is +42

Note Added 3/18/13 at 9:47 AM:  The new trading week is off and stumbling.  VIX is the key and Keybot has lowered the bull-bear line to 14.95 now. VIX is currently printing 13.27 so the market bulls are maintaining control. The bears will growl strongly and Keybot will likely flip short if the VIX moves above 14.95. SOX prints a LOD at 426.30 thus far today, only five points from the bull-bear danger line at 421 that would also likely cause Keybot to flip short.

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