Tuesday, November 17, 2015


Keybot the Quant remains short. Stocks rally strongly to begin the week uneffected by Paris terrorism since central bankers will keep providing easy money. The caution flag is out but bulls still have more work to do with the algo number 21 points below the signal line. Higher semiconductors and lower volatility created the bulk of yesterday's gains. For Tuesday, volatility, chips and retail are important.

Watch VIX 18.37 a bull-bear line in the sand. VIX is at 18.16 in bull territory creating lift in the equity markets. Bears need VIX above 18.37. Watch SOX 647.75. SOX is at 652.03 creating market bullishness. Watch RTH 76.10. RTH is at 75.02 in the bear camp creating market negativity. Bulls need RTH above 76.10 to confirm a more sustainable upside rally.

For the SPX starting at 2053, closing at the highs, the bulls only need a smidge of green to create an upside acceleration and this is already on tap with S&P futures +8. The bears need to push the SPX under 2019 to create a downside acceleration and regain their mojo. The bears remain in control but the bulls are knocking on the door.

11/22/15; 7:00 PM EST =
11/18/15; 9:00 AM EST =
11/16/15; 3:09 PM EST = -11; signal line is +10
11/16/15; 1:55 PM EST = -25; signal line is +12
11/16/15; 1:47 PM EST = -41; signal line is +15
11/16/15; 1:25 PM EST = -25; signal line is +17
11/15/15; 7:00 PM EST = -41; signal line is +20

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