Thursday, March 3, 2011

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flipped back to the long side at the open.  This is the first time the algorithm ever flipped positions that fast back-to-back.  This whipsaw behavior highlights the emotional news cycle currently.

Semi's and copper remain on the bull side while retail and volatility remain on the bear side.  Financials are the arbiter over the last couple days and turned back to the bull side at the open this morning.  Watch the 16.50 level for XLF; if above, the broad market bulls are favored overall, if below, the broad market bears are favored.  XLF now sits at 16.62.  Another whipsaw by Keybot would not be unexpected so stay on guard.  Caution is warranted.

4/3/11; 7:00 PM EST =
3/31/11; 7:00 PM EST; EOM =
3/29/11; 10:00 AM EST =
3/27/11; 7:00 PM EST =
3/25/11; 10:00 AM EST =
3/20/11; 7:00 PM EST =
3/16/11; 8:30 AM EST =
3/13/11; 7:00 PM EST =
3/11/11; 10:00 AM EST =
3/6/11; 7:00 PM EST =
3/4/11; 9:00 AM EST =
3/3/11; 9:31 AM EST = +34; signal line is +29; go long 1319; (Benchmark SPX for 2011=+4.9%)(Keybot this trade=-1.2%; Keybot for 2011=+1.8%)(Actual this trade via MZZ=-2.5%; Actual for 2011=+2.6%)
3/2/11; 12:01 PM EST = +18; signal line is +30; go short 1304; (Benchmark SPX for 2011=+3.7%)(Keybot this trade=-0.8%; Keybot for 2011=+3.0%)(Actual this trade via DDM=-1.6%; Actual for 2011=+5.1%)
3/2/11; 11:38 AM EST = +18; signal line is +32 but algorithm says stay long; reversal appears imminent

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