Friday, January 23, 2015

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long through the weekend but is already champing at the bit to reverse to the short side again. The aglo number drops under the signal line late day to flip Keybot short but internal programming rules would not fully latch so the algo remains long. Monday morning should be interesting. The NYA fell through 10805 late day causing the market weakness. Bears are celebrating this failure which is a key market signal (NYA 40-week MA cross).

Also of interest is the VIX that came down to the 15.85 that Keybot identified ahead of time and bounced. This was the bull's chance to catapult stocks wildly higher but instead the VIX would not fail at 15.85 and started to climb again which flushed the stock market lower into the closing bell (VIX moves inverse to he SPX). The market momentum swung back in the bear's favor after the VIX would not fail and then accelerated more negative with the NYA failure.

1/25/15; 7:00 PM EST =
1/23/15; 3:42 PM EST = +22; signal line is +24 but algorithm remains long
1/22/15; 2:32 PM EST = +36; signal line is +25; go long 2054; (Benchmark SPX for 2014 = -0.2%)(Keybot algo this trade = -0.8%; Keybot algo for 2014 = -3.0%)(Actual results this trade = -0.8%; Actual results for 2014 = -5.8%)

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