Monday, September 22, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side as volatility leaps higher and equities stumble lower. The seesaw market action continues. VIX is well above the 12.38 danger line so stocks are selling off. The bulls need VIX under 12.38 to stop the downward slide in equities. The bears need weaker utilities and/or semiconductors to create more downside fuel. Watch UTIL 542.42 and SOX 636.00. Either one would create a strong down leg in the broad indexes. If the parameters above remains status quo, equities will stagger along sideways to sideways lower.

Both the algorithm computer program and the actual trading end up dead flat for the last trade as the bulls and bears fight for control. Keybot exited SSO and entered QID. As always, stay alert for a whipsaw move especially in these sideways choppy markets. For now, the bears are driving the bus again. If the VIX drops under 12.38 consider the imminent turn notation to be back in the title line since the bulls will be pushing the stock market higher. Bears are fine going forward as long as they keep VIX above 12.38.

9/26/14; 10:00 AM EST =
9/22/14; 9:36 AM EST = +42; signal line is +42; go short 2004; (Benchmark SPX for 2014 = +8.4%)(Keybot this trade = -0.1%; Keybot for 2014 = +8.0%)(Actual this trade = +0.0%; Actual for 2014 = +9.3%)
9/21/14; 7:00 PM EST = +56; signal line is +42
9/19/14; 1:57 PM EST = +56; signal line is +42
9/19/14; 1:00 PM EST = +42; signal line is +42 but algorithm remains long
9/18/14; 9:59 AM EST = +56; signal line is +42
9/18/14; 9:00 AM EST = +42; signal line is +42 but algorithm remains long
9/17/14; 3:50 PM EST = +42; signal line is +43 but algorithm remains long
9/17/14; 2:24 PM EST = +56; signal line is +42; go long 2005; (Benchmark SPX for 2014 = +8.5%)(Keybot this trade = -0.4%; Keybot for 2014 = +8.1%)(Actual this trade = -1.0%; Actual for 2014 = +9.3%)

No comments:

Post a Comment

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