Saturday, August 3, 2013

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long through the weekend but the algo wants to go short; the algo number is under the signal line. Thus, if the SPX drops under 1700, and other internal rules click into place, Keybot will likely flip short. If the SPX gaps down on Monday morning about 11 points or more, this would delay the move to the short side for about 90 minutes. The bears have it within their grasp. The key metric affecting market direction right now is copper. Watch JJC 39.02. Other areas and levels of interest can be identified for next week once the Sunday pre-scheduled number prints tomorrow. The imminent turn notation is added in the title line. Monday is an important session and copper will tell the story overnight Sunday. Bulls win if copper moves higher. Bears win if copper moves lower.

8/4/13; 7:00 PM EST =
8/2/13; 11:55 AM EST = +49; signal line is +50 but algorithm says stay long
8/2/13; 9:30 AM EST = +65; signal line is +49

3 comments:

  1. How can we get Quant updates as soon as they are determined? Are they emailed or tweeted, etc???

    ReplyDelete
    Replies
    1. Nope Xtrend, updates are posted as time permits. Sometimes they can be posted right away, sometimes a few hours later. Keybot takes a smoother run through the trading year so a few SPX handles should not make much difference. What also happens sometimes is Keybot will go short at a certain SPX level, but then the markets may recover, the algo may want to keep Keybot short but the SPX will be at higher levels than the entry so it actually works out better to wait a few hours or a day or two sometimes. If Keybot flips tomorrow, it should be posted in a timely manner. A gap down of 11 or 12 SPX points or more will trigger a timer preventing a move to the short side for at least 90 minutes. Bears are all set if JJC stays under 39.02 and SPX drops under and stays under 1701 so this really tells you what you need to know. If JJC pops above 39.02, all bets are off and bulls are fine. So watch S&P futures overnight and copper. The trend changes are posted on Twitter and FaceBook but these posts occur after the site is updated.

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