Wednesday, September 30, 2015


Keybot the Quant remains short. The algo prints one number during the session with the algo number only one point under the signal line and the pre-scheduled number this evening to close out the month and quarter results in a dead tie with the algo and signal line numbers. This behavior verifies that the bulls and bears are battling and in a stalemate. One side or the other will likely emerge victorious tomorrow. Looking at the internal parameters in the program, the algorithm does not appear to want to flip long at tomorrow's (Thursday) opening bell but that may change by the time the open comes around; the model likely wants to see more oomph from the bulls.

Keep watching UTIL 569.68 and also 589.40 which would light the way higher for stocks. UTIL under 569.68 will usher in market weakness. Bulls will receive strength if JJC moves above 28. Another hint of a further rally would be if volatility drops and semiconductors pop.

For the SPX starting at 1920, the bulls need to touch the 1921 handle and an upside acceleration will quickly occur into the mid to upper 1920's. So watch the S&P futures overnight to see if the bulls can muster up one positive point. The bears need to push the SPX under 1887, a formidable task, so instead the bears will focus on pushing utilities, copper and chips lower and volatility higher. A move through 1888-1920 is sideways action for Thursday. Markets are very erratic and unstable and with the algo number and signal line both at -43, flip a coin. The 1's and 0's will probably make a decision tomorrow; UTIL 569.68 is important.

10/4/15; 7:00 PM EST =
10/2/15; 9:00 AM EST =
9/3015; 7:00 PM EST EOM EOQ3 = -43; signal line is -43 but algorithm remains short
9/30/15; 10:02 AM EST = -43; signal line is -42
9/29/15; 10:08 AM EST = -59; signal line is -41

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