Tuesday, December 10, 2013


Keybot the Quant is short moving into the Wednesday session. The markets are exhibiting more drama than a Shakespearean play. The bulls move GTX above 4811 and VIX below 14 creating market bullishness, but equities fell into the closing bell. The algo wants to flip back to the long side (algo number is above the signal line). There are several internal programming rules that will need to latch to trigger the move, but, in general, if the SPX moves above 1808.50, and stays above, Keybot will likely flip long. The bears need to keep the SPX under 1808.50 while at the same time pushing GTX under 4811 and the VIX back above 14. As if this drama was not enough, the algo is also tracking JJC 39.66 which is causing market bullishness but only by 16 pennies. Bears need JJC under 39.66 to create market negativity so watch copper in overnight trading.

Utilities collapse today which is odd since yields drop as well. UTIL is 482.42 (under the 483 number the bears needed last week but it is meaningless this week) and the bears need 477.87 to create negativity.  This UTIL 477.87 is also the trap-door which would create a large and quick drop in equities if it fails. For the SPX starting at 1803, the bulls need to push above 1808.50 to create an upside acceleration and likely cause the algo to flip long. The bears need to push under 1802 to accelerate the downside. A move through 1803-1808 is sideways action. Bulls have it on a silver platter only needing to push above SPX 1808.50 for Keybot to flip long and the path to the 1820's will begin. The bears must push at least 2 of the following 4 parameters into the bear camp to create downside mojo (all 4 are currently bullish); UTIL 477.87, JJC 39.66, GTX 4811 and VIX 14. The odd market behavior continues. Equities remain erratic and unstable. Wednesday is a very important day.

12/15/13; 7:00 PM EST =
12/10/13; 3:59 PM EST = +60; signal line is +43 but algorithm remains short
12/10/13; 1:47 PM EST = +46; signal line is +42 but algorithm remains short
12/10/13; 12:31 PM EST = +32; signal line is +41

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