Monday, September 8, 2014


Keybot the Quant remains short. The bulls appeared ready to retake control but are struggling early in the new week of trading. Watch VIX 12.34 as the bull-bear line and volatility launches far above which causes today's weakness. Note, however, that the sneaky bulls are pushing copper strongly higher since they lost volatility. Watch JJC 38.70 as the bull-bear line in the sand and price is at 38.86 handily above. This strength in copper prevents the stock market from falling any significant amount.

Interestingly, the two key parameters driving market direction currently flip camps at the opening bell; the VIX is now causing bearishness while JJC is causing bullishness. One market day is stranger than the next. One of these two will flinch and identify the correct market direction ahead. Bulls need VIX under 12.34 (lower vol). Bears need JJC under 38.70 (lower copper).

The SPX is not yet able to touch the 2008 handle to ignite an upside acceleration. The HOD is 2007.17 which printed in the first seconds of the session. The beat goes on. Markets stagger sideways.

9/12/14; 10:00 AM EST =
9/8/14; 9:36 AM EST = +56; signal line is +54 but algorithm remains short
9/7/14; 7:00 PM EST = +54; signal line is +53 but algorithm remains short

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