Saturday, May 10, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long through the weekend. The algo had an active day on Friday with lots more to and fro between bulls and bears. Sideways choppiness. The bulls push copper, JJC, above 37.48, so they ultimately win the day. Financials, XLF, teased under 21.83 for a few minutes but the bears folded like a cheap suit and after 11 AM the bulls were running higher on the copper victory train.

Keybot was in position to flip short all week long but the parameters would not completely latch to allow the move to the short side. For the algo to want to flip short all week (algo number under signal line) but the internal rules to hold it back, has never happened in the history of the algo for five consecutive days. At most, one or two days will occur before the algo would flip direction. Note that the week ends with the bulls in sync with the algo number above the signal line. The bears threatened all week long but never had the energy.

Financials and copper will remain key on Monday. Also commodities. Bulls will set their sights on the retail sector next week and earnings from M, KSS and others are on tap. The retail sector will determine if the SPX moves above 1900 and higher, or not. If JJC drops under 37.48 or XLF under 21.83, a ceiling will be placed on the market upside. The imminent turn notation remains since bears can reverse the uptrend at any time with weaker financials and/or copper. The set up for next week can be posted once the Sunday pre-scheduled number prints tomorrow.

5/11/14; 7:00 PM EST =
5/9/14; 11:22 AM EST = +65; signal line is +50
5/9/14; 10:42 AM EST = +49; signal line is +50 but algorithm remains long
5/9/14; 10:16 AM EST = +65; signal line is +50
5/9/14; 10:01 AM EST = +49; signal line is +50 but algorithm remains long
5/9/14; 9:55 AM EST = +65; signal line is +51
5/9/14; 9:47 AM EST = +49; signal line is +51 but algorithm remains long
5/9/14; 9:36 AM EST = +65; signal line is +51
5/7/14; 2:34 PM EST = +49; signal line is +51 but algorithm remains long

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