Keybot the Quant flips back to the short side at SPX 1951 after the opening bell; the first whipsaw move in many months. The flip to the long side only occurred 24 hours prior. As stated yesterday, markets are erratic and unstable. The key today was the failure in financials and the NYA Index. Both parameters jump into the bear camp but the fight right now is exactly at the XLF 23.12 bull-bear line in the sand.
The algo is tracking financials as the top parameter affecting market direction currently. As this is typed, XLF is making a bounce or die decision at 23.12. Above XLF 23.12 and equities will recover today. Below XLF 23.12 and markets will continue lower. Watch RTH 62.10 as another important line in the sand. RTH is at 62.30 on the bull side by 20 cents creating market lift. Equities will take a strong leg lower if RTH fails from 62.10. The SPX is traveling through a wide 30-point plus range in the last 24 hours.
The algo is tracking financials as the top parameter affecting market direction currently. As this is typed, XLF is making a bounce or die decision at 23.12. Above XLF 23.12 and equities will recover today. Below XLF 23.12 and markets will continue lower. Watch RTH 62.10 as another important line in the sand. RTH is at 62.30 on the bull side by 20 cents creating market lift. Equities will take a strong leg lower if RTH fails from 62.10. The SPX is traveling through a wide 30-point plus range in the last 24 hours.
The algo lost -1.2% on the last trade and the actual trading lost -2.4% over the 24-hour period due to the double-leveraged ETF. Since a whipsaw occurred (a reversal within 10 hours trading time), the algo begins trading single ETF's for the next 35 days to reduce risk. Keybot exited SSO and entered SH. The benchmark SPX is up 5-1/2% this year and the algorithm's actual trading is up +9% almost double.
The bears are driving the bus but watch for another potential whipsaw in these erratic markets. XLF 23.12 dictates the direction of the equity markets right now. Price sits exactly on top of XLF 23.12. Whichever way financials go so go the markets.
The bears are driving the bus but watch for another potential whipsaw in these erratic markets. XLF 23.12 dictates the direction of the equity markets right now. Price sits exactly on top of XLF 23.12. Whichever way financials go so go the markets.
10/12/14;
7:00 PM EST =
10/7/14;
9:36 AM EST = -23; signal line is -2; go short 1951; (Benchmark SPX for
2014 = +5.5%)(Keybot this trade = -1.2%; Keybot for 2014 = +8.3%)(Actual this
trade = -2.4%; Actual for 2014 = +8.9%)
10/6/14;
1:23 PM EST = +7; signal line is +0
10/6/14;
12:29 PM EST = -7; signal line is +1 but algorithm remains long
10/6/14;
12:08 PM EST = +7; signal line is +3
10/6/14;
11:51 AM EST = -7; signal line is +3 but algorithm remains long
10/6/14;
9:31 AM EST = +7; signal line is +5; go long 1974; (Benchmark SPX for
2014 = +6.8%)(Keybot this trade = +1.5%; Keybot for 2014 = +9.5%)(Actual this
trade = +2.0%; Actual for 2014 = +11.3%)
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