Thursday, December 5, 2013


Keybot the Quant remains short and 2 days pass with the algo idling and not printing any numbers. 2 pre-scheduled numbers print tomorrow morning. The algo is prioritizing a similar theme. Bears need GTX 4809, UTIL 482.94 and/or XLF 20.90. Note that UTIL keeps drifting lower to tease the 482.94 trap-door trigger for markets but the bulls keep finding a way to prevent the collapse.  Bulls need JJC 39.67 and/or UTIL 491.25 and if 1 of these 2 turn bullish, and the SPX prints above 1793, and stays above, Keybot will likely flip long. Therefore, copper trading overnight is important. In addition, the lower UTIL number to watch next week will be 477.87 instead of the 482.94, a much easier level for bulls to maintain. Into the closing bell, watch to see how UTIL moves. Any print under UTIL 480 is bearish for markets next week but if UTIL heads up towards 490+, this hints that the bulls will be in good shape for the days ahead. Obviously, the 10-year yield will move off the Monthly Jobs Report number and a jump higher in yields will send utilities plummeting and a drop in yields will send utes higher. The retail sector is weakening and the algo is monitoring RTH 58.90 so keep that in mind should markets deteriorate.

For the SPX, starting at 1785, the bulls need to push above 1793, and it will be a big bull party into the weekend with SPX heading towards 1800. The bears need to push under 1783 and the downside will accelerate to test the 1778-ish level quickly where price will either bounce, or die. A move through 1784-1792 is sideways action. The 3 weeks of sideways action through SPX 1782-1814 may all come to a head tomorrow. A decision is needed. Markets remain erratic and unstable.

12/8/13; 7:00 PM EST =
12/6/13; 10:00 AM EST =
12/6/13; 9:00 AM EST =
12/3/13; 1:22 PM EST = +30; signal line is +33
12/2/13; 3:32 PM EST = +16; signal line is +34

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