Sunday, July 28, 2013

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the new week of trading. The algo is tracking volatility, semiconductors, utilities, copper and commodities with volatility and semi's the top tier influences on market direction currently. Watch VIX 14.18 (now causing bullishness), SOX 470.70 (now causing bullishness), UTIL 481.30 (now causing bullishness), UTIL 528.03 (now causing bearishness), JJC 39.20 (now causing bearishness) and GTX 4785 (now causing bullishness).  Bulls need higher copper and utilities but both sectors remain challenged. Bears need lower semiconductors and higher volatility but they are not cooperating either. Hence, markets stutter sideways. Semiconductors provided drama on Friday and this may continue on Monday so SOX 470.70 is key. Any change to any parameter listed above will immediately send equities in that respective direction.

For the SPX starting at 1692, closing at the highs, the bulls only need a smidge of green in the futures overnight tonight and the SPX will jump to test 1696, then 1699, and then 1700+. The bears need to keep the futures negative and push under 1676 after the opening bell, Friday's low, a formidable task but not impossible, to accelerate the downside. A move through 1677-1691 is sideways action for Monday. The bulls are cruising but weakness in semiconductors (monitor $SOX and SMH), should it occur, will be a game changer to the bear side.  Keybot prints three pre-scheduled numbers this week one each on Tuesday, Wednesday evening and Friday. Markets remain erratic, indecisive and unstable.

8/4/13; 7:00 PM EST =
8/2/13; 9:00 AM EST =
7/31/13; 7:00 PM EST EOM =
7/30/13; 10:00 AM EST =
7/28/13; 7:00 PM EST = +50; signal line is +36
7/26/13; 10:00 AM EST = +50; signal line is +35

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