Tuesday, October 20, 2015


Keybot the Quant remains long moving into the Wednesday session. On Tuesday, the algorithm did not print any numbers. Note how retail stocks, RTH dropped to 75.71 exactly at the 75.70 support that Keybot identified ahead of time. Isn't it amazing? RTH bounced off the bull-bear line so the bears did not gain any downside juice.

Wednesday is shaping up as a fight between retail stocks and copper. The bulls need higher copper, JJC above 28.04, and the upside in stocks will continue. Stocks will catapult higher if SPX moves above 2048. The bears need RTH under 75.76 to firmly stop the stock market rally and introduce selling pressure.

For the SPX starting at 2031, the bulls need to push above 2039, about 8 points higher, and the upside will accelerate well into the 2040's. The bears need to push under 2027 to accelerate the downside to 2019 in a flash. A move through 2028-2038 is sideways action for Wednesday. The bulls are driving the bus with the algo number 17 points above the signal line. If copper remains weak and the retail stocks drop into the bear camp, Keybot may be in position to flip short, especially if the SPX also falls under 2027.

10/25/15; 7:00 PM EST =
10/20/15; 9:00 AM EST = +40; signal line is +23
10/19/15; 9:36 AM EST = +40; signal line is +22

No comments:

Post a Comment

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