Tuesday, September 16, 2014


Keybot the Quant remains short through the wild circus-type behavior today. The algo is on the verge of going long. Watch JJC 38.48 (now 38.34 causing market negativity) and VIX 12.37 (now at 12.73 causing market negativity). If either the JJC or VIX turns bullish, only one is necessary, and the SPX moves above 2002, Keybot will likely flip to the long side. The bears are on the ropes and need to maintain bearish copper and higher volatility while at the same time forcing semiconductors and utilities lower.

For the SPX starting at 1999, the bull only need three points, to poke up through the strong 2002-2003 resistance and an upside acceleration will occur with the algo probably flipping to the long side. The bears must push under 1980, a formidable task, to regain their mojo, so instead they will focus on lower copper, semi's and utes and higher volatility. A move through 1981-2001 is sideways action for Wednesday.

The Fed announcements and drama begin at 2 PM (7 PM London time). Since copper (JJC) is so close to turning bullish, watch the copper trade overnight. If copper is up strongly, the fix is likely in and the bulls should run tomorrow. Negative copper will keep the bears in the hunt. Markets are at an important inflection point and Fed Chair Yellen will decide the markets' fate.

9/18/14; 9:00 AM EST =
9/16/14; 9:52 AM EST = +42; signal line is +42 but algorithm remains short

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.