Thursday, September 10, 2015


Keybot the Quant remains short moving into trading for Thursday. The algo prints four numbers yesterday. RTH jumped above 76.10 so the bulls were cheering. Then the SOX ran higher to the robot's key level at 633.50; the bull's were ready to lock in the recovery rally but whammo, semiconductors collapse, then retail stocks and the bulls run out of gas and stocks end lower on the day. It is amazing how Keybot can identify the key area and level (yesterday in the chips with SOX 633.50) affecting market direction before it happens.

With markets heading lower yesterday the bears were salivating since copper was dropping. The bears look in great shape again, however, note that JJC could not drop below the key 28.37 bull-bear level, hence, the bears got nothing either.

Thus, for Thursday, bears win big with lower copper and JJC dropping under 28.37. Copper futures are trading higher. The bulls win big with retail stocks recovering higher with RTH above 76.10. Status quo will send stocks sideways. If stocks sell off but JJC does not drop under 28.37, then the stock market will likely recover and rally.

For the SPX starting at 1942, the bears need to push under 1938, four points lower, to create a downside acceleration. S&P futures are -4 giving up gains of +20 overnight. The bulls need to retrace yesterday's loss to regain their mojo a formidable task so instead bulls will focus on keeping copper positive with all their might. The algo number is only 23 points under the signal line so the band is tightening. For now, the bears are in control. Watch copper, retail stocks and chips since they are currently the key market direction drivers.

9/13/15; 7:00 PM EST =
9/11/15; 10:00 AM EST =
9/9/15; 10:36 AM EST = -38; signal line is -15
9/9/15; 10:29 AM EST = -22; signal line is -13
9/9/15; 10:08 AM EST = -38; signal line is -11
9/9/15; 9:36 AM EST = -22; signal line is -9
9/8/15; 9:46 AM EST = -38; signal line is -7

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