Tuesday, April 21, 2015


Keybot the Quant remains long and printed one number during the Tuesday session. The algo is champing at the bit to go short but the internal programming rules did not completely latch so Keybot remains long. If the SPX drops under 2094 in the Wednesday session, Keybot will likely flip short hence the imminent turn notation in the title line. If stocks gap down at the Wednesday open, a timer may activate preventing a flip to the downside for about 90 minutes.

Copper was weak today creating the downward bias in stocks today. Ditto financials. Bulls need XLF above 24.17 and that is the signal for party time for the upside again. Bulls are in trouble if XLF stays under 24.17. The bears need to push utilities, semiconductors or retail stocks lower to gain more downside fuel. Bears need either SOX under 700 and/or RTH under 76.08 to create market negativity.

If UTIL drops under 578.60 (now at 585.80 causing market bullishness), a trap-door will likely open and there is high probability the stock market would drop like a stone, into free-fall, say within 30 minutes time. Bulls must hold UTIL above 578.60 or they will likely lose control of the stock market. This level and scenario will remain valid for several days forward. 

For the SPX starting at 2097, the bears need to push under 2094 to accelerate the downside and Keybot will likely flip short. The bulls need to touch the 2110 handle and the upside will accelerate. A move through 2095-2109 is sideways action. Bulls need stronger banks or they are in trouble.

4/26/15; 7:00 PM EST =
4/21/15; 1:39 PM EST = +38; signal line is +51 but algorithm remains long
4/20/15; 2:07 PM EST = +54; signal line is +51

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