Sunday, January 5, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short to begin the first full week of trading in 2014. As mentioned previously, utilities, volatility and copper dictate market direction currently; watch UTIL 482.19 (now causing bearishness at 481.40), VIX 14.12 (now causing bullishness at 13.76) and JJC 40.25 (now causing bullishness at 40.91), respectively. The UTIL 480-482 level is the trap-door level. Technically, to begin the week, with UTIL under 482.19, the trap-door is open and significant market downside is expected. The bulls crushed volatility on Friday which stopped the market downside. If VIX pops above 14.12 and moves towards 15 and above, at a minimum staying above 14.12 here on out, and UTIL loses 480-482, markets will be dropping like a stone. Bulls will recover using the new money for the new year to stage a come back move if UTIL moves above 482.19 on Monday.

For the SPX starting at 1831, the bulls need to push above 1838 to accelerate the upside towards 1850 again. The bears need to push under 1829 to accelerate the downside. A move through 1830-1837 is sideways action. Keybot prints one pre-scheduled number this week on Friday morning. The bears are driving the bus and need VIX above 14.12 and/or JJC under 40.25 to receive more downside fuel. The bulls need UTIL above 482.19 as soon as possible to prevent the market downside from gaining momo. Markets remain erratic and unstable. If the bulls push UTIL above 482.19, and the SPX above 1838, and these levels hold, Keybot will likely flip long.

1/12/14; 7:00 PM EST =
1/10/14; 9:00 AM EST =
1/5/14; 7:00 PM EST = +33; signal line is +41
1/3/14; 12:23 PM EST = +33; signal line is +41

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