Sunday, August 2, 2015


Keybot the Quant remains long moving into the new week of trading. Note how UTIL came down to 583.28 late Friday and bounced. It is always amazing how the algorithm can identify these key pivot points in individual sectors exactly when their importance to overall market direction is at a peak. For Monday, UTIL 586.44 is a key level. UTIL begins in bear territory at 583.94; bulls need to push above 586.44 to gain market strength while bears need to push utilities lower. Bulls need NYA above 10941 to gain upside strength for the broad market. Bears need either VIX above 13.70 and/or XLF under 24.82 to receive downside juice for the stock market.

For the entire week, UTIL 597.81 is a key number in addition to 586.44. Since UTIL is well below, the algo will likely print a number in the opening minutes of trading Monday morning sending the algo number down to +3 very near the signal line but not yet under to prepare the algo to flip short. Bears will need either lower financials or higher volatility to flip the model to the short side, or, the stock market may become tricky and slick and jog UTIL above and below 586.44 during the day which may then subsequently be enough to move the algo number below the signal line. For now, the bulls are running the show.

For the SPX for Monday beginning at 2104, the bulls need to push above 2114 to accelerate the upside. Bears need the SPX under 2102, only two points lower, to accelerate the downside which will seek 2098 then 2091. S&P futures are +1 as this message is typed Sunday evening in the States on the East Coast. A move through 2103-2113 is sideways action to begin the week. UTIL 586.44 may be a hot pivot point on Monday and the broad market direction will follow its behavior; bulls win above and bears win below.

8/9/15; 7:00 PM EST =
8/7/15; 9:00 AM EST =
8/2/15; 7:00 PM EST EOM = +19; signal line is -1
7/31/15; 12:02 PM EST = +19; signal line is -3
7/31/15; 10:29 AM EST = +35; signal line is -6

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