Friday, March 6, 2015

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Friday session and today is a photo-copy of yesterday. The algorithm did not print any numbers yesterday. The pre-scheduled number prints in a couple of hours. Market bulls need to push copper higher to begin an upside recovery rally. Watch JJC 32.01 the bull-bear line in the sand. Copper is trading lower this morning. Bears win if JJC stays under 32.01. Bulls win above JJC 32.01.

Bears will receive more downside fuel if VIX moves above 15.76 and/or if XLF drops under 24.11. Bulls receive upside juice with JJC 32.01 and/or UTIL above 596. If JJC or UTIL turn bullish, either one will do, and the SPX moves above 2104, Keybot will likely flip to the long side.

The algorithm identifies UTIL 596 as a key bull-bear level but this expires today and is replaced with UTIL 599.70, thus, a harder upside target for bulls to achieve. The UTIL 599.70 level is in play for every day next week so watch where UTIL closes at this afternoon in relation to 599.70. Another key level is UTIL 573 which will create strong downside selling pressure for stocks if it fails. Consider UTIL 573 to represent a trap-door in the stock market where a potential large flush downward will occur quickly for the stock market if the UTIL 573 fails. UTIL begins at 588.

For the SPX starting at 2101, the bulls need to touch the 2104 handle, only three points higher, and bingo, the upside will accelerate several more handles to 2110. The bears need to push under 2095 to accelerate the downside into the 2080's. A move through 2096-2103 is sideways action but unlikely since the range is tight. Bulls will win above 2103-2104 and bears will win under 2095-2096.

3/8/15; 7:00 PM EST =
3/6/15; 9:00 AM EST =
3/3/15; 11:33 AM EST = +52; signal line is +60; go short 2104; (Benchmark SPX for 2015 = +2.2%)(Keybot algo this trade = +2.4%; Keybot algo for 2015 = -1.3%)(Actual results this trade = +2.5%; Actual results for 2015 = -4.8%)

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