Wednesday, April 3, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 1562. Semiconductors collapse today; the SOX now printing 421.26 with a LOD at 420.84 far below the bull-bear line in the sand. The semi's have created the bulk of the market weakness this week.  VIX is above 13 but below the 14.50 bull-bear line helping the bulls. Markets should remain weak and have staying power on the bear side if the SOX remains under 425. The bears are driving the bus now and as always, stay alert for a whipsaw today or tomorrow. Keybot made a smidge of a profit on the last trade exiting DIA and entering SH a short time ago. The caution flag remains out but will not be needed if the bears push VIX above 14.50. Note the weakness in XLF and Keybot is now locking on to a XLF 17.80 target which would usher in strong market bearishness (now at 18.03).

4/5/13; 9:00 AM EST =
4/3/13; 11:02 AM EST = +33; signal line is +45; go short 1562; (Benchmark SPX for 2013  = +8.7%)(Keybot this trade = +0.3%; Keybot for 2013 = +1.5%)(Actual this trade = +0.6%; Actual for 2013 = +1.6%)
4/2/13; 2:27 PM EST = +33; signal line is +46 but algorithm says stay long
3/31/13; 7:00 PM EST EOM = +49; signal line is +47
3/29/13; 10:00 AM EST = +49; signal line is +46
3/28/13; 12:00 PM EST = +49; signal line is +45
3/28/13; 10:19 AM EST = +63; signal line is +44
3/28/13; 9:30 AM EST = +49; signal line is +43
3/27/13; 1:22 PM EST = +63; signal line is +42
3/26/13; 10:00 AM EST = +49; signal line is +41
3/24/13; 7:00 PM EST = +49; signal line is +40
3/20/13; 11:15 AM EST = +49; signal line is +39; go long 1557; (Benchmark SPX for 2013  = +9.2%)(Keybot this trade = -1.1%; Keybot for 2013 = +1.2%)(Actual this trade = -0.8%; Actual for 2013 = +1.0%)

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