Tuesday, July 8, 2014


Keybot the Quant remains long moving into the Wednesday session. The algo did not print any numbers in the Tuesday session. The equity markets placed a top since GTX is under 5029. Note this morning how price came up to exactly 5029 with the bulls trying to recover, but GTX was slapped in the face and collapsed lower now under 5K creating market negativity. So weak commodities are the bears best friend currently. Bulls cannot push higher to the all-time highs without GTX above 5029. The bears need either RTH 59.34 and/or VIX 13.15 to create downside selling. If one of these two parameters turn bearish, and the SPX drops under 1959, Keybot will likely flip short. Since the retail sector may potentially give up the ghost, the caution flag is added in the title line.

For the SPX starting at 1964, the bulls need to push above 1976 to accelerate a move higher. The bears need to push under 1959.50, about 4 or 5 points lower, to accelerate the downside. A move through 1960-1975 is sideways action for Wednesday. The bears win with RTH 59.34 or VIX 13.15. The bulls win with GTX 5029. If retail stocks and volatility remain bullish, and commodities remain bearish, respectively, the stock market will stagger along sideways.

7/13/14; 7:00 PM EST =
7/7/14; 10:53 AM EST = +67; signal line is +63

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