Saturday, September 15, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long thru the weekend. The algo idled along all week without printing any numbers, only the pre-scheduled number yesterday.  As described since last weekend, the utillities sector is of great interest to the quant yesterday and into Monday.  For all of next week, use UTIL 478.48 as your guide that determines if broad markets move upwards, or if they sell off. UTIL closed at 472.13 so the market bulls need to bounce this over six points at Monday's opening bell to continue the upside rally. If UTIL remains under 478.38, the markets will sell off.  If UTIL stays under 478.48, and the SPX drops under 1460, Keybot will most likely flip to the short side. However, if the bulls can bounce UTIL above 478.48, or, if the bulls can keep the SPX above 1460 on Monday, they are fine.

The utilities can also serve as a forecasting tool on Monday since if the bulls bounce UTIL above 478.48, it shows that they mean business and the QE3 bazooka will indeed move markets far higher going forward.  Conversely, if UTIL stays under 478.48, the bull rally is over.  If conditions deteriorate, and UTIL tumbles lower falling thru 461.45 (only ten points away), the markets will likely go into free fall. The quant also continues to track semiconductors and volatility with interest but the week ahead can be set up after the Sunday pre-scheduled number prints tomorrow.

9/16/12; 7:00 PM EST =
9/14/12; 10:00 AM EST = +76; signal line is +63

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