Monday, September 8, 2014


Keybot the Quant remains short. Copper flinched with JJC dropping under 38.67 ushering in market weakness. At the closing bell, copper recovers and closes smack-dab on top of the 38.67 identified as the bull-bear line in the sand by the algo. Since price is exactly on JJC 38.67, whichever way copper trades overnight the equity markets will go in the same direction tomorrow. Volatility remains important; VIX 12.34. So bears need to keep VIX above 12.34 and send JJC immediately lower under 38.67. The bulls need to send the VIX under 12.34 and the JJC above 38.67 to proclaim victory ahead. If JJC moves above 38.67 or VIX under 12.34, either one will do, and the SPX moves above 2007, Keybot will likely flip long.

For the SPX starting at 2002, the bulls need to move above 2007 and price will run to 2011 immediately. The bears need to push under 1996 to accelerate the downside to an immediate test of the strong 1990-1991 support. A move through 1997-2006 is sideways action. Copper is extremely important; as copper goes so goes the markets.

9/12/14; 10:00 AM EST =
9/8/14; 11:57 AM EST = +40; signal line is +53
9/8/14; 9:36 AM EST = +56; signal line is +54 but algorithm remains short

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