Thursday, September 18, 2014


Keybot the Quant remains on the long side after the wild ride yesterday. The bulls continue to slap the bears in the face today. Commodities and copper are the only bear-friendly sectors. The VIX collapses under 12.37 after the opening bell moving into the bull camp sending the stock market higher. The VIX is now at 11.98 losing the 12 handle so equities are printing at the highs. Watch VIX 12.37. Bears got nothing without volatility increasing above VIX 12.37.

[Utilities had a bad data feed earlier.] The algo is tracking utilities again the UTIL 550 number for all of this week. Markets will weaken if UTIL loses the 550 level. The UTIL bull-bear level for next week is 542.42 a much easier target for bulls to remain above. The following week, however, the week of 9/29/14, UTIL must remain above 566.46 or the markets will weaken. So the bulls may have an easier road next week with utilities but price must start marching far higher over the coming days otherwise the utes will usher in market weakness as September comes to a close. This concept is very important; utes must rise through late next week up to the UTIL 566 level and higher, otherwise, the stock market will likely weaken considerably. If utilities climb steadily higher now through next week, through 555, 560, 565, and higher, that is a signal that the bulls remain in great shape.

The SPX prints a new all-time record high at 2011.79 and gunning for another as this is typed with price above 2010. Everything is going the bulls way. Equities will continue sideways to sideways higher until the VIX moves above 12.37 or UTIL moves under 550.

9/21/14; 7:00 PM EST =
9/18/14; 9:59 AM EST = +56; signal line is +42
9/18/14; 9:00 AM EST = +42; signal line is +42 but algorithm remains long
9/17/14; 3:50 PM EST = +42; signal line is +43 but algorithm remains long

No comments:

Post a Comment

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