Thursday, January 2, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to begin the new year of trading. The market bulls need UTIL above 493.50 to signal further upside party time. Market bears need to push UTIL under 482.19, a trap-door for equities, to create downside. UTIL begins at 490.57. Bears can create market negativity with GTX under 4820 and/or VIX above 14.15. Both levels were teased on Tuesday, hence the caution flag has returned. The algo number is 22 points above the signal line so bulls are comfortable but this may change quickly. If the VIX moves above 14.15, and GTX under 4820, and the SPX loses 1842.50, and stays under, Keybot will likely flip short.

For the SPX starting at another new all-time closing high at 1848, the bulls need to punch up through 1849.50, and the upside orgy will continue with price moving well into the 1850's. The bears need to push under 1842.50 to accelerate the downside. A move through 1843-1848 is sideways action. Low volume trading is expected. S&P futures are -3 at this writing about 2 hours before the opening bell, which would favor the sideways zone. Pay attention to utilities, volatility and commodities. If either VIX or GTX turns bearish, consider the algo to be in imminent turn status.

1/5/14; 7:00 PM EST =
1/1/14; Begin 2014 Data Set = +63; signal line is +41; go long 1848; (Benchmark SPX for 2014  = 0%)(Keybot this trade = 0%; Keybot for 2014 = 0%)(Actual this trade = 0%; Actual for 2014 = 0%)

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