Tuesday, September 2, 2014


Keybot the Quant remains long as the new holiday-shortened week of trading begins and the algo prints a number off the get-go. Volatility leaps higher which places a lid on the SPX. Watch VIX 12.44 and JJC 38.77 (copper). Copper trades flat to lower so JJC remains bearish causing market negativity and volatility joins the bear camp with VIX above 12.44.

The algorithm is champing at the bit to go short but is held back since internal programming parameters are not fully latched as yet. If the SPX drops under 1995 and trails lower and remains lower, with the VIX remaining above 12.44, Keybot will likely flip short. Volatility and copper continue running the show and since VIX is near the 12.44 bull-bear line in the sand, use this as the main rudder steering the market directional ship today. Equities will recover and float higher if VIX drops under 12.44.

9/5/14; 9:00 AM EST =
9/2/14; 9:42 AM EST = +40; signal line is +51 but algorithm remains long
8/31/14; 7:00 PM EST EOM = +54; signal line is +51

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