Monday, October 1, 2012

Keybot the Quant Turns Bullish

Keystone's proprietary algorithm, Keybot the Quant, continuously posted in the left margin, flipped back to the long side at 10 AM at SPX 1453.  The markets are very erratic and unstable currently. Stay alert for a whipsaw in the hours and couple days ahead. More information is found on Keybot's site:

http://www.keybotthequant.blogspot.com
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9 comments:

  1. ArnieOctober 1, 2012 at 11:47 AM

    great! I went long too, but at 1448, when friday's 1447 high was broken to the upside. Got stopped out of shorts with minimal loss. Let's see if it ca break 1464, 1467 and then 1474.

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  2. Keystone SpeculatorOctober 1, 2012 at 11:54 AM

    SPX 1460 is very strong resistance so that would be saying something if it moves up thru, that would probably set up 1468. Then the test of the high at 1474/1475. It's all very shaky, anything can happen. It's testing 1453 support now. Ben is on deck with his bazooka.

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    1. ArnieOctober 1, 2012 at 12:26 PM

      yes, i totally agree, 1460 first. in this market one baby step at the time.

      what pleases me, is that I have now been on the right side of the trade several times in a row on the same day as the quant flipped, but often a few points earlier :-). I think I am getting the hang for what to look for :-)

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  3. MCAPOctober 1, 2012 at 2:10 PM

    Way 2 go Arnie :)

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    1. ArnieOctober 1, 2012 at 2:33 PM

      thanks, IMHO the move down from 1474 to 1430 was an ABC correction (4th wave) with A from 1474 to 1450, B from 1450 to 1467 and C from 1467 to 1430.

      A was 24 points down, B was 17 points up, which is classic 68% retrace and C was 37 points down, which is 1.5x A. That in it self is rather short, often it's 1.62, but it could have been a truncated 5th wave down (possibly due to excessive liquidity due to QE3).

      I was short from 1465 to 1450, then from 1460 to 1445 and then again from 1445. The last short got stopped out at 1448... thus 2 winners, one looser. Not bad!

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  4. ArnieOctober 1, 2012 at 3:32 PM

    hmmm, market leading lower like a punctured balloon... what's up with that. Maybe not an ABC correction, but a 5-wave correction, where today's top was IV??? sjeees, this market gets tougher by the minute...

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  5. Keystone SpeculatorOctober 1, 2012 at 3:50 PM

    Watch UTIL 472.06 and VIX 17.25, both are bullish now. If they remain so, the markets will lilkely float back up. If either one crosses the level shown, that will equate to accelerated market selling. These are psycho markets, the flat VIX then positive VIX as markets moved up this morning was a red flag, they move inverse 90% of the time. Lots of trickeration is ahead.

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    1. Keystone SpeculatorOctober 1, 2012 at 3:51 PM

      (SPX and VIX move inverse to each other 90% of the time)

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    2. ArnieOctober 1, 2012 at 3:57 PM

      watching 'em like a hawk. ;-) I did get some shorts too, just in case.

      Delete

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