Keybot the Quant is short. The market bears are keeping markets weak by keeping copper, JJC, under 48.40 and semiconductors, SOX, under 410.00. If the bears decide to push lower, they will do it with either the commodities or the financials. Watch CRB 313, now at 314.45, and XLF 14.30, now at 14.44. If either of these two levels fail tomorrow or in the days ahead, the broad markest will weaken substantially.
For the SPX for Wednesday, starting at 1343, the market bears obviously have the momo. If the bears can push three points lower, to lose the 1340 handle, the broad market downside will accelerate likely in concert with the CRB or XLF giving up the ghost. Price would move lower to likely test 1333 support. The market bulls simply need to stop the market slide and will be happy with a sideways day thru 1341-1362.
Stay on guard to see if a whipsaw move occurs. The bears are in control now. The trading excitement will increase into the end of the week with Greece's drama and the Jobs Report on deck.
3/11/12; 7:00 PM EST =
3/9/12; 9:00 AM EST =
3/6/12; 12:18 PM EST = +44; signal line is +67; go short 1343; (Benchmark SPX for 2012 = +6.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +4.7%)(Actual this trade = -0.8%; Actual for 2012 = +7.4%)
Hi keybot thanks for the helpful insights. What do you expect the s and p 500 to fall to before keybot turns long again? Over what sort of timeframe? Thank you. Susan
ReplyDeleteHello Anon, the algo does not really work in that manner, it would be more of an idea of what SPX number would cause Keybot to flip long. As of this writing at about 1 PM EST Wednesday, SPX 1363 would be needed for bulls so it looks like bears will stay in business. AAPL iPad3 news will effect markets shortly. JJC would have to stay above 48.43 for bulls as well, but if JJC stays under 48.43 and SPX under 1363, the bears will remain in the drivers seat.
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