Tuesday, August 30, 2011

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant motors along on the long side. The algo is now monitoring RTH 103.94, so continue watching that today. Below, as it is now, and the market bulls are running out of gas.The bulls can run the indexes higher if they get above 103.94.

Copper is coming up strongly and now Keybot is focusing on that sector as well. Use JJC as a guide, now with a 54 handle, the market bulls need to see 54.50 which will cause the market bulls to run much higher. JJC attained 54.31, only 19 cents away, then, as the Consumer Confidence data was just released, markets fell out of bed, and the JJC has now fallen to 54.02.

Another sector the algo is now monitoring is commodites.  Watch the CRB 341.77 level; CRB is now hanging out just under 338, only less than four points away. If CRB moves up and over 342, the market bulls will extend the rally much further.

Thus, markets are meandering now. SPX:VIX remains over 35 favoring bulls, keep an eye on it. Watch RTH 103.94, but as this commentary was written, RTH is now under 103, thus, retail will not provide the leadership needed to drive indexes higher. Watch JJC 54.5. Watch CRB 342. The bulls are languishing now since retail, copper and commodities are not providing the leadership needed, but, bulls are not in trouble unless you see the SPX:VIX ratio lose 35.

9/4/11; 7:00 PM EST =
9/2/11; 9:00 AM EST =
8/31/11; 7:00 PM EST EOM =
8/30/11; 10:00 AM EST = -72; signal line -76
8/28/11; 7:00 PM EST = -72; signal line -77
8/26/11; 10:00 AM EST = -72; signal -77
8/23/11; 11:51 AM EST = -72; signal line is -77; go long 1146; (Benchmark SPX for 2011=-8.9%)(Keybot this trade=+13.4%; Keybot for 2011=+21.2%)(Actual this trade via SDS=+25.6%; Actual for 2011=+28.4%)

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