Sunday, March 11, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to start the new trading week.  One pre-scheduled number prints this week on Friday so the market action will dictate the algorithm's behavior.  The bulls wrestled back control of the markets late last week.  AAPL recovered as well to match the prior highs from days earlier.  The market bears need to see copper, JJC, fail at 48.65.  JJC is now at 49.35 and bulls will try to keep it that way.  Similarly, commodities, CRB, watch 313.  CRB is now at 317.61 and bulls will try to keep it that way.  The dollar bounced on Friday but copper and commodities surprisingly stayed elevated.

The utilities are in play again this week; Keybot is now monitoring UTIL 443.63 and this number will remain as is all week long unlike other levels that fluctuate slightly.  UTIL is now at 454.95, comfortably eleven points higher, so the bulls are cruising. Keybot is also watching SOX 413.00. The bulls have the SOX at 423 now. Watch AAPL since Apple leads tech that leads the broad markets.  Since last weeks market breakdown occurred due to semiconductor and copper weakness, watch SOX and JJC closely.

The SPX begins the week at 1371, middle distance between where the bulls and bears need to move to benefit their cause.  If the SPX touches the 1375 handle, the bulls will accelerate the markets higher, likely testing the prior intraday high at 1378.04 in short order. Firm overhead resistance is at 1386.  The bears need to lose the 1366 handle, if you see the 1365 handle start to print, the markets will tumble lower in short order. A move thru 1367-1373 is sideways action.  Stay on guard, markets remain unstable.

3/18/12; 7:00 PM EST =
3/16/12; 10:00 AM EST =
3/11/12; 7:00 PM EST = +76; signal line is +67
3/9/12; 9:00 AM EST = +76; signal line is +66
3/8/12; 12:04 PM EST = +76; signal line is +66; go long 1364; (Benchmark SPX for 2012  = +8.4%)(Keybot this trade = -1.6%; Keybot for 2012 = +3.1%)(Actual this trade = -1.6%; Actual for 2012 = +5.8%)

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