Utes, UTIL, failed 439 at the open, causing the current market weakness. The market bulls are receiving no help from weak financials and volatility remaining elevated. The semiconductors, however, remain bullish as perceived by Keystone's algorithm.
For today, watch UTIL 439 and SOX 360.80. If UTIL regains 439, then the markets will rally, if the SOX drops under 360.80, then further market weakness will appear. Current prints are UTIL 435.46, market bearish, and SOX 365.72, market bullish.
Note Added 10/11/11 at 10:45 AM EST: Note that the financials are back in the game. XLF is now printing 12.50 and the magic number to increase market bullishness is 12.56, only six pennies away. So as the utes and socks idle along without changing, the financials are causing the current index buoyancy. The algo is now watching UTIL 439 (currently market bearish), SOX 361.15 (currently market bullish) and XLF 12.56 (currently market bearish-barely). These three sectors will dictate broad market direction today.
Note Added 10/11/11 at 11:08 AM EST: Note that Keystone's SPX:VIX ratio remains above 35 which is market bullish. Also, the Nasdaq is up 0.5% while the SPX is flat. The Nasdaq leads so this is perceived as market bullish. UTIL remains under 439, market bearish, SOX is over 361.15, market bullish, and XLF is under 12.56, market bearish. Market bulls remain in good shape thus far today despite losing the UTIL 439 level.
Have you ever considered making an automated live data signal system available for a fee?
ReplyDeleteI am very intruiged by your work.
Hello Dankir, yes, in fact, the numbers posted are dictated by a custom algorithm, Keybot the Quant. http://www.keybotthequant.blogspot.com.
ReplyDeleteThe algo provides the key levels to watch and automatically makes long and short calls on the SPX. Reference Keybot the Quant's site for more information including insight into how the algorithm functions. There is a link in the right margin.
The algorithm took ten years to develop; every indicator and economic data point was researched and back tested during development. The unique aspect, due to the nature of the way it was constructed, is that no one will be able to duplicate the way Keybot functions. Keybot was ready to rock in November 2008, right in the middle of the Fall 2008 crash, and has performed like a champ over the last three years.
The algo's calls are provided on the Internet now as a way to display and expose the algorithm to traders around the world. The response is overwhelming. Over time, as Keybot the Quant's merits are proven, the site will probably turn private as you mentioned, or perhaps taken over by a hedge fund for their sole proprietary use. For now, everyone can simply enjoy the ride.
I am a 37 year old German who has lived in 9 countries and speaks 5 languages. I graduated from the London School of Economics and worked for Europe's largest strategy consulting firm, and as a marketing consultant to the former head of UBS North Americas among other things. For the past few years I was a partner in a social media site that has now however been closed down. My father was a major palyer in the pension fund business in Europe in the 80's, and I have traded for the past 7 years.
ReplyDeleteI am looking for a new challenge. Maybe we can talk? I could imagine to partner in maybe either marketing this site as a for-fee site or in showing it to my brother and friends that run a very successful brokerage/hedge fund in Geneva.
Best regards,
Daniel
That all sounds interesting Dankir. For now, both sites, The Keystone Speculator, and Keybot the Quant, are in a growth phase, it is enjoyable to see the global readership grow each day and will be interesting to see how that growth rate continues, and what opportunities continue to appear.
ReplyDeleteBy all means contact Keystone thru the email at keystonespeculator@gmail.com.
"Five languages?" Keystone says jokingly, "I have trouble with one."