Thursday, October 30, 2014


Keybot the Quant remains long and the algo is very active today printing five numbers thus far. The JJC (copper) failure occurs as previously highlighted. The model slipped negative at 10:47 AM EST but the bulls are fighting back. Note the collapse in semiconductors taking out the SOX 612.75 bull-bear line in the sand. This creates market negativity but the bulls pump NYA higher above the 10647 bull-bear line in the sand to maintain market buoyancy. The fight at NYA 10647 will tell you market direction today. Price is now at 10654 only seven points above.

The caution flag is out again, however, even with NYA failing, Keybot will likely not flip short unless the SPX loses the 1969 level. Markets are erratic and unstable. SOX 612.75 (price now below causing bearishness in stocks) and NYA 10647 (price now above causing bullishness in stocks) provides the market direction answer today. Obviously, if you are bullish you need semiconductors to recover today. If bearish, you want to see NYA fail which will cause the broad indexes to sell off.

10/31/14; 10:00 AM EST =
10/30/14; 11:03 AM EST = +28; signal line is +20
10/30/14; 10:47 AM EST = +14; signal line is +18 but algorithm remains long
10/30/14; 10:23 AM EST = +30; signal line is +16
10/30/14; 10:13 AM EST = +14; signal line is +14 but algorithm remains long
10/30/14; 9:36 AM EST = +30; signal line is +12
10/29/14; 3:59 PM EST = +46; signal line is +10

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