Sunday, October 26, 2014


Keybot the Quant is long moving into the new week of trading. Monday begins with a fight between semiconductors and financials. The algo is focusing on the chips as the major determinant in broad market direction; the SOX 612.93 line in the sand. The SOX begins at 612.05 so if the semi's overtake the 612.93 level, less than one point away, the bulls will catapult markets higher and not look back. Watch XLF 22.90. XLF begins at 23.10 causing bullishness so market bears need weaker banks and the XLF under 22.90 to get their downside mojo back. Also watch NYA 10635 which would signal a far higher stock market going forward. If NYA remains under 10635, equities should weaken over time and roll back over to the downside.

For the SPX starting at 1965, the bulls only need to see a smidge of green in the overnight futures and the upside party continues with a several handle acceleration higher. The bears need to push the SPX under 1946 to regain their mojo. A move through 1947-1964 is sideways to begin the week. Bulls win with SOX 612.93. Bears win with XLF 22.90. Chips and financials rule the roost so listen for any news on semicondutors and banks. Keybot prints two pre-scheduled numbers this week one on Tuesday and one on Friday.

11/2/14; 7:00 PM EST EOM =
10/31/14; 10:00 AM EST =
10/28/14; 10:00 AM EST =
10/26/14; 7:00 PM EST = +9; signal line is -20
10/24/14; 9:36 AM EST = +9; signal line is -21

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