Thursday, December 5, 2013


Keybot the Quant remains short and idles through the Wednesday session without printing any numbers. The algo is currently tracking copper, JJC 39.67, commodities, GTX 4809, utilities, UTIL 483 and 491, volatility, VIX 13.95 and financials, XLF 20.90. The Thursday session will begin with JJC causing bearishness, GTX causing bullishness, UTIL 483 causing bullishness, UTIL 491 causing bearishness, VIX causing bearishness and XLF causing bullishness. Thus, bulls need JJC 39.67 (only 23 cents away), VIX 13.95 and/or UTIL 491, and it will be smooth sailing higher for the stock market. If 1 of these 3 turn bullish, and the SPX prints above 1800 and stays above, Keybot will likely flip long. The bears need to push GTX under 4809, UTIL under 483 and/or XLF under 20.90 to create a strong down leg in equities.

For the SPX starting at 1793, the bulls need to push above 1800 to accelerate the upside. The bears need to push under 1779 to accelerate the downside. A move through 1780-1799 is sideways action. S&P futures are flat 4 hours before the opening bell. Markets remain a coin-flip but will probably commit to a firm direction at any time (the SPX is sideways through 1780-1810 for the last 3 weeks), and the direction will be identified by the parameters above. Bulls need higher copper. Bears need lower commodities. Copper and commodities are weak in early trading. Watch JJC 39.67 and GTX 4809 closely.

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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