Sunday, November 1, 2015


Keybot the Quant is long going into the new week of trading. The algo wants to flip short and will do so if the SPX moves lower through the 2073-2079 area. It is very likely that Keybot will flip short if the stock market begins Monday moving lower under 2079--as long as the move is not a large gap-down move.

Bulls need higher utilities, UTIL agove 589.25, and/or higher copper, JJC above 27.95, to signal the all-clear for more upside in stocks. If both parameters remain in the bear camp, stocks will float along sideways with a downward bias. The bears need SPX under 2079 which will likely trigger the model to flip short. If the SPX slips under 2050-2052 a whole new down leg for stocks will begin.

For the SPX starting at 2079, the bears need any smidge of red in the S&P futures and stocks will accelerate lower after the opening bell. The bulls need to keep the S&P futures positive overnight with all their might and then push the SPX above 2094 after the opening bell to accelerate the upside to 2100. A move through 2080-2093 is sideways action to begin the week.

Keybot has never gone this long (2-1/2 days) where the algo wants to flip in a new direction but the internal programming rules will not latch to permit the move. Something will happen tomorrow. Either utilities or copper will jump above the levels listed above to signal the all-clear for bulls, or, the SPX will head lower after the opening bell which will likely cause Keybot to go short. Keybot prints one pre-scheduled number this week on Friday morning before the opening bell. The bulls are driving the bus but the bears also have their paws on the wheel as the pair careens down the boulevard.

11/8/15; 7:00 PM EST =
11/6/15; 9:00 AM EST =
11/1/15; 7:00 PM EST EOM = +35; signal line is +40 but algorithm remains long
10/3015; 10:00 AM EST = +35; signal line is +40 but algorithm remains long

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