Wednesday, October 1, 2014


Keybot the Quant remains short after the dust settles from the Wednesday carnage. The bear's took no prisoners and bludgeoned the bulls. The algo number is now a huge 63 points below the signal line. Watch the retail sector as the main market direction driver for Thursday; RTH 61.90. Price begins at 61.77 only pennies away in bear territory so if the bulls can move RTH above 61.77 they can stop the market bleeding.

Also monitor the XLF 23.07 and NYA 10630 bull-bear levels. Both are bearish creating the market downdraft. Most of the algorithm tools are proprietary but the NYA is one anyone can follow. It is a cross of the NYA 40-week MA and it determines if markets are in a cyclical bull or cyclical bear and the cyclical bears take control after the long cyclical bull rally since 2011 and 2012.

For Thursday, bulls and bears will fight at the levels listed above especially the RTH 61.90 so use that as the key tool dictating market direction. The bears are driving the bus with their feet up on the dash and they just ran over the bulls laying in the middle of the road.

10/5/14; 7:00 PM EST =
10/3/14; 9:00 AM EST =
10/1/14; 1:06 PM EST = -39; signal line is +24
10/1/14; 12:40 PM EST = -23; signal line is +27
10/1/14; 11:29 AM EST = -9; signal line is +30
10/1/14; 11:07 AM EST = +7; signal line is +31
10/1/14; 10:14 AM EST = -9; signal line is +32
10/1/14; 10:05 AM EST = -23; signal line is +33
10/1/14; 9:47 AM EST = -9; signal line is +36
10/1/14; 9:36 AM EST = +7; signal line is +38
9/30/14; 7:00 PM EST EOM EOQ3 = +23; signal line is +37

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