Tuesday, November 4, 2014


Keybot the Quant remains long moving into the Wednesday session. The algo continues to motor along without printing any numbers. VIX 14.10 and JJC 37.05 are the bull-bear lines in the sand with volatility and copper remaining the two most important parameters for market direction currently. Bears win and a market top is in if the VIX stays above 14.10 and the JJC stays under 37.05. The bulls will launch a new leg higher in the stock market if the VIX drops under 14.10 or if the JJC moves above 37.05.

For the SPX starting at 2012, the bulls need to touch the 2016 handle and bingo, an upside several-handle acceleration will occur. The bears need the SPX to drop under 2001 to create a downside acceleration. A move through 2002-2015 is sideways action. Watch copper in overnight trading since the stock market will move in the same direction as copper.

After the opening bell, watch VIX 14.10 since even if markets rally strongly higher say with a takeover of the Senate by the republicans in the elections, if the VIX does not drop under 14.10 the bulls got nothing and markets will reverse and selloff. If VIX falls under 14.10 a big bull rally party continues.

11/7/14; 9:00 AM EST =
11/2/14; 7:00 PM EST EOM = +46; signal line is +28

No comments:

Post a Comment

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