Monday, December 30, 2013


Keybot the Quant remains long. The last day of trading for 2013 is on tap tomorrow and Keybot prints two pre-scheduled numbers. The algo has to be closed out for the year and then 2014 begins with a clean slate again. UTIL is at 489 between the 493.50 the bulls need to signal more markets upside, and the 485.33 that will create broad market selling. Volatility jumped today but the bears need VIX 14.15 and higher to create market selling. VIX is at 13.56. Commodities lost ground as well dropping to GTX 4856 but the bears need 4822 to create market selling. Thus, things are status quo in Monday's trade. Equities float sideways.

For Tuesday, the EOM, EOQ4, EOY2013, last trading day of the year, starting at SPX 1841, the bulls need to push up through 1842.50 and the upside will accelerate to 1845 in a heartbeat and then potentially on to 1850. The bears need to push under 1839 to accelerate the downside. A move through 1840-1842 is sideways action. Surprisingly, the SPX remained in a tight 3-point range to begin the week. Considering the tight available sideways range for Tuesday, one side or the other should win; happy bulls above 1842.50 and happy bears under 1839. If UTIL drops under 485.33, GTX under 4822, and/or VIX above 14.15, any 2 of the 3 would do, Keybot would be in position to flip short. If any of the 3 parameters turn bearish a lid will be placed on the market upside and the caution flag will be out. Bulls need UTIL above 493.50 to take the SPX above 1850.

12/31/13; 7:00 PM EST EOM EOQ4 EOY2013 =
12/31/13; 10:00 AM EST =
12/29/13; 7:00 PM EST = +61; signal line is +38

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