Tuesday, September 23, 2014


Keybot the Quant is on the short side and volatility will continue playing the key role in market direction. Watch VIX 12.38. Bears win with VIX above 12.38. Bulls win below. The algo begins tracking semiconductors identifying SOX 636.00 as a bull-bear line in the sand. SOX is 641.35 comfortably in bull territory causing stock market lift. Bears can create strong downside if semiconductors fail.

For the SPX starting at 1994, the bears need three points, to push under 1991 and the downside will accelerate to 1888 quickly and then test 1985-1986 support. The bulls need to retrace yesterday's loss, a formidable task, so instead will concentrate on dragging volatility lower and pushing semi's higher to try and stop or stall the market selling. A move through 1992-2008 is sideways action. The bears are driving the bus. Note: The pre-scheduled number listed previously for today is actually for next Tuesday so this Friday morning is the only pre-scheduled number that will print this week.

9/28/14; 7:00 PM EST =
9/26/14; 10:00 AM EST =
9/22/14; 9:36 AM EST = +42; signal line is +42; go short 2004; (Benchmark SPX for 2014 = +8.4%)(Keybot this trade = -0.1%; Keybot for 2014 = +8.0%)(Actual this trade = +0.0%; Actual for 2014 = +9.3%)

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