Keystone's Midday Market Action 11-30-11

Retail, utilites and lower volatility are strongly supporting and lifting the broad markets. Thus, other sectors must be referenced to gauge further market strength. Keystone's algo is currently highlighting four new sectors to watch; semiconductors, financials, copper and commodities. If the SOX, semi's, now at 365.84, moves above 370, four points higher, the markets will accelerate upwards.

If XLF, financials, now at 12.48, moves above 12.75, the markets will accelerate upwards. JJC, copper, has joined the bull camp now.   JJC is now at 45.66, firmly above the 45.25 level that serves as a bullish-bearish line, so this is adding bullish thrust for the broad markets. Watch JJC closely the remainder of the day.  Lastly, CRB, commodities, now at 313, watch the 322 level which would signal more broad market bullishness.  Copper is the key today driving markets higher. Thus, the four sectors now supporting the bullish strength are utes, retail, lower volatility and copper.

Note Added 11/30/11 at 2:35 PM:  Wild day today.  JJC (copper) remains elevated so all systems are go for bulls.  Semiconductors, the SOX, jumped into the bull camp for a little while but then moved back out.  SOX is now printing 370.07.  If SOX moves above 370.50 broad markets will run a lot higher into the close.  Financials are running.  XLF now printing 12.67, if the 12.75 level is achieved, only 8 more pennies, the broad markets will take another big leg upwards into the close. Thus, the bulls are driving the bus now, comfortably motoring along with no worries, watch JJC, SOX and XLF to determine broad market direction going forward.

Note Added 11/30/11 at 3:02 PM:  XLF inching higher now printing 12.72. A couple more pennies and this will open up the flood gates for the broad markets to move higher.

Note Added 11/30/11 at 3:16 PM:  There she is, XLF at 12.74, close enough. As long as this 12.74 holds, or higher, then the broad markets should run higher now into the close. High drama.

Note Added 11/30/11 at 3:19 PM:  SOX popped up to 370.50 as well but got spanked back, keep an eye on that. The markets may experience a wild orgy into the close if XLF and SOX cooperate.

Note Added 11/30/11 at 3:22 PM:  Look at them go. XLF now 12.77.  SOX now over 370.50. Markets are deciding now. One orgy, coming up? Next few minutes will tell the tale.

Note Added 11/30/11 at 3:24 PM:  TRIN is 0.25, obscenely low, uber bullish.  NYAD spiked over +2500 today, now printing +2300, uber bullish. Both of these, however, are contrarian, and would forecast a snapback market pull back move to recover. SOX 370.21 now and XLF 12.73 so the end-of-day orgy is in jeopardy. Markets are very bullish, however. SOX is above 370.50 and XLF at 12.74 again, orgy is back on.

Note Added 11/30/11 at 3:41 PM:  XLF at HOD at 12.78.  Wow, now 12.81.  Holy smokes.  SOX blew up thru 370.50 now printing 371.47. The orgy is in full swing now. Big melt-up into the close.

Note Added 11/30/11 at 3:46 PM:  Dow Industrials are now over 12K, where's my 12K hat?  It's around here somewhere. Whoops, maybe there's time to find that hat.

Note Added 11/30/11 at 4:09 PM:  The wild upside melt-up into the close was due to the bullish financials and semi's. Everything went the bull's way today. The Dow closed at 12046, up 490 points, or 4.2%. 12K hats all around. That was one for the record books. Interestingly, the SPX closed at SPX 1247, this was the level that Keystone's algo had shorted from back on 11/15/11. The SPX gained 52 points today, or 4.3%. The Nasdaq was up 105 points, or 4.2%. RUT small caps were up 41 points, or 5.9%.