Sunday, August 10, 2014


Keybot the Quant remains bearish moving into the new week of trading. The bulls receive juice from RTH moving above 59.51 so keep an eye on this metric. Copper remains in the bear camp with JJC under 38.92. Utilities are in the bear camp with UTIL under 543.81. Retail stocks, copper and utility stocks are driving market direction right now more than any other parameters. UTIL begins the week at 542.69 only about a buck to the bear side. Watch utes at the opening bell. If UTIL moves above 543.81, the broad indexes will gain more upside strength. If UTIL and JJC turn bullish, the algorithm may flip to the long side, hence the caution flag is out which may become an imminent turn signal if copper and utilities turn jubilant. The bears need RTH under 59.51 to prove they are in control.

For the SPX starting at 1931.50, the bulls only need one point of upside, to 1932.50-ish, and bingo, the broad indexes will run another leg higher. So the overnight S&P futures are important and the bulls appear in control ready for a happy start to the week, however, look how fast the markets changed on Friday. The bears need to push under 1909 to regain their mojo, a formidable task, so instead bears will focus on creating weakness in retail, copper and utilities; these three metrics provide the market direction answer for Monday. Keybot prints one pre-scheduled number this week on Friday morning.

8/17/14; 7:00 PM EST =
8/15/14; 10:00 AM EST =
8/10/14; 7:00 PM EST = -9; signal line is +22
8/8/14; 1:35 PM EST = -9; signal line is +24

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