Sunday, April 6, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant begins the new week of trading on the short side. The push and pull sideways markets continue. The algo is most focused on retail and volatility. Bulls need RTH above 59.53 and a recovery rally will be back in full swing. Bears need VIX above 14.50 for equities to take the next leg lower. Bears would also create more market negativity if XLF (financials) drops under 21.83.

For the SPX starting at 1865, the bulls need to recover all of Friday's losses to regain their mojo. Price printed a new all-time record high at 1897.28 before collapsing over 30 handles lower intraday. Instead, bulls will focus on pushing the retail sector higher, RTH above 59.53, and the market selling will stop. The bears need to push less than two points lower, under 1863, to accelerate the downside so watch the overnight futures to see if any negativity appears. A move through 1864-1896 is sideways action for Monday.

For now, the imminent turn notation is removed since bulls are going to likely need to push above SPX 1897 in Monday trading to flip the algo back to the long side; a very formidable task. However, if RTH 59.53 occurs creating bullishness consider the imminent turn to be back in affect. RTH 59.53 and VIX 14.50 provides the market direction answer for Monday trading. Keybot prints one pre-scheduled number this week on Friday morning.

4/13/14; 7:00 PM EST =
4/11/14; 10:00 AM EST =
4/6/14; 7:00 PM EST = +47; signal line is +48
4/4/14; 12:53 PM EST = +47; signal line is +48; go short 1875; (Benchmark SPX for 2014 = +1.4%)(Keybot this trade = -0.1%; Keybot for 2014 = +3.7%)(Actual this trade = -0.2%; Actual for 2014 = +3.5%)

No comments:

Post a Comment

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