Sunday, December 20, 2015


Keybot the Quant is short moving into the holiday-shortened week of trading. The stock market closes early at 1 PM EST on Thursday, Christmas Eve, and is closed for Friday, Christmas Day. The bulls will need higher financials, semiconductors and lower volatility to stop the downward slide in equities. Watch XLF 24.08, SOX 660.90 and VIX 19.19. Bulls got nothing unless one of these three parameters is achieved. If one parameter turns bullish consider the caution flag out and if 2 of the 3 turn bullish the algorithm will likely be in an imminent turn status ready to flip back to the long side.

The bears need retail stocks to crumble which would create a new flush lower in the stock market. Watch RTH 77.33 which would create carnage. If all four of the above parameters remains status quo, then the stock market will stagger sideways.

For the SPX on Monday starting at 2006, the market bulls need to retrace Friday's drubbing to regain their mojo which is very unlikely, so instead bulls will fight to send banks and chips higher while sending volatility lower. The bears only need to see a smidge of negativity in the overnight S&P futures and boom, stocks will accelerate lower after the opening bell. Keybot does not print any pre-scheduled numbers during this 3-1/2 day trading week.

12/27/15; 7:00 PM EST =
12/20/15; 7:00 PM EST = -28; signal line is -3
12/18/15; 9:30 AM EST = -28; signal line is -3; go short 2037; (Benchmark SPX for 2015 = -1.1%)(Keybot algo this trade = -1.1%; Keybot algo for 2015 = +10.0%)(Actual results this trade = -1.0%; Actual results for 2015 = +18.6%)

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