Keystone's Evening Nightcap 10-7-11

Utes and retail remained buoyant all day long; UTIL above 424 and RTH above 103.75, so the market bulls had no worries. The semiconductors tried to push the bulls to the next level with SOX over taking 359.60 but after a few minutes, this failed. Thus, staying under the SOX target and above the UTIL and RTH targets resulted in sideways slop.

Note how gold is moving more with the commodities and indexes nowadays; up markets=up commodites=up gold and down markets=down commodites=down gold. Copper and commodties, and gold, for this week managed to recover from the previous few week's drubbings. Every weekend we are in the same seat, waiting for word on the terms of the Greek default, one of these weekends, perhaps this weekend?, we will receive a plan which must properly address the Italy and Spain contagion.  After the bell tonight, Moody's placed Belgium's debt on review for potential downgrade, so this is likely not priced into the markets as yet.

An interesting development is that although Keystone is long thru the weekend, the algo is poised to reverse at the Monday open due to the utilites, UTIL, unable to close above 439. We will take a closer look this weekend.