Thursday, July 21, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

Despite the big pop, Keybot the Quant stays bearish. Volatilty dropped into the complacent bulls camp this morning once the positive economic data and news out of Europe hit the wires.  Oddly, copper is weak and semiconductors are muted. The algorithm clicked off a higher number now only two ticks away from wanting to join the bulls, but, for now, Keybot remains bearish.

Financials are the big mover today, now dancing with the bull-bear line as perceived by the algorithm.  The XLF, now at 15.30, needs to move above 15.32 to prove this broad market rally is real; only two measly cents.  If the XLF cannot get above 15.32, this broad market move up is suspect.  Use the XLF as your guide for the broad markets today.  Markets remain unstable, stay on guard, caution is warranted.

7/31/11; 7:00 PM EST EOM =
7/29/11; 10:00 AM EST =
7/26/11; 10:00 AM EST =
7/24/11; 7:00 PM EST =
7/21/11; 9:49 AM EST = +18; signal line is +20
7/19/11; 9:00 AM EST = +4; signal line is +19
7/18/11; 3:54 PM EST = +4; signal line is +17
7/18/11; 10:06 AM EST = -10
7/17/11; 7:00 PM EST = +4; signal line +15
7/15/11; 10:00 AM EST = +4
7/11/11; 10:34 AM EST = +4; signal line is +12; go short 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=+3.0%; Keybot for 2011=+7.8%)(Actual this trade via IWM=+3.7%; Actual for 2011=+2.8)

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