Wednesday, October 28, 2015


Keybot the Quant remains long. The algo prints one number during the Wednesday trade and interestingly, despite the big run-up in stocks, Keybot is champing at the bit to go short. The internal programming rules, however, will not yet permit the move to the bear side. If the SPX drops under 2063, the algo will likely flip short. The bulls need either UTIL above 589.28 or JJC above 27.97 to create more stock market upside. Equities will trade flat with a downward bias if utilities and copper remain in the bear camp.

For the SPX starting at 2090 on Thursday, the bulls need any smidge of positivity in the S&P futures and boom, stocks will accelerate higher after the opening bell. The bears need to push under 2063, a formidable task, so instead the bears will fight overnight to keep S&P futures negative and then keep utes and copper bearish during the regular session. It is fascinating to see stocks spike higher with the algo wanting to go short; this is extremely odd, erratic, and unstable behavior.

11/1/15; 7:00 PM EST EOM =
10/3015; 10:00 AM EST =
10/2815; 10:31 AM EST = +36; signal line is +44 but algorithm remains long
10/2715; 3:17 PM EST = +52; signal line is +44

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