Tuesday, October 7, 2014

Keybot the Quant Turns Bearish

Keystone's trading algo, Keybot the Quant, whipsaws back to the short side after the opening bell today at SPX 1951. That is the first whipsaw for the algorithm in many months. Markets are very erratic and unstable currently. Financials are hit as regulators plan to clamp down and bring more charges of currency manipulation against the big banks this year into next. Watch XLF 23.12 bull-bear line in the sand. Financials are impacting market direction more than any other parameter currently. XLF price is at 23.12 so a bounce or die decision is occurring. Bulls will take the stock market higher if XLF overcomes 23.12 and higher. Bears will rule under XLF 23.12. Equities will flush lower if RTH loses 62.10. More information is found at Keybot's site;

Keybot the Quant

Note Added 11:09 AM:  XLF 23.03 so the bears are pushing lower. RTH is 62.44 so the bulls are relinquishing some near term downside but not giving up the fight since retail stocks remain handily above the RTH 62.10 line in the sand. Equities are a circus this week thus far. Keep your seat belt latched. Watch XLF 23.12 since it will dictate market direction for the remainder of the day.

Note Added 11:16 AM: XLF 22.99. RTH 62.35.

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