Tuesday, October 13, 2015


Keybot the Quant remains long but is champing at the bit to go short as shown by the algo number below the signal line. Internal programming rules are not fully latched so the flip to the short side is not yet permitted. For  Wednesday, the SPX likely has to drop under 2002, and remain under this level for at least 5 to 7 minutes, and trending lower, and Keybot will likely flip short. If a gap down occurs on Wednesday morning, a timer will likely trigger and the algo will probably not flip short for at least 90 minutes after the opening bell. There are a lot of moving parts currently. The bulls and bears are fighting it out as evidenced by the one point difference in the algo number and signal line.

If JJC (copper) moves above 28.04, or XLF (financials) above 23.35, or UTIL (utilities) above 589.22, any one would do, all bets are off for the short side and the bulls will be  back in business sending the stock market higher.  If SOX (semi's) drops under 620.40 (only a couple points down from current levels), bears will accelerate the downside in stocks. Ditto if the VIX moves above 18.04 or if the RTH drops under 75.70.

All these parameters matter but keep it simple and watch SPX 2002, JJC 28.04 and SOX 620.40. Bears win with lower chips and bulls win with higher copper. For the SPX starting at 2004, the bulls need to push above 2022 to regain their mojo, a formidable task, so instead the bulls will focus on pushing copper, banks and utes higher which will stop the broad market selling. The bears need to push the SPX under 2002 to accelerate the downside. A move through 2003-2021 is sideways action for Wednesday. Flip a coin; anything can happen. Wednesday may be a wild day.

10/18/15; 7:00 PM EST =
10/16/15; 10:00 AM EST =
10/13/15; 12:57 PM EST = +3; signal line is +4 but algorithm remains long
10/13/15; 11:55 AM EST = +19; signal line is +3
10/13/15; 11:33 AM EST = +35; signal line is +2
10/12/15; 1:50 PM EST = +19; signal line is 0
10/12/15; 11:16 AM EST = +35; signal line is -2
10/12/15; 10:56 AM EST = +19; signal line is -4
10/12/15; 10:16 AM EST = +35; signal line is -6
10/11/15; 7:00 PM EST = +19; signal line is -9

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.