Tuesday, January 12, 2016


Keybot the Quant remains short as the new year market shenanigans continue. Keybot was champing at the bit to go long at the opening bell today. Market bulls would have been better served with a slow and gentle rise higher in equities. Instead, stocks gapped higher and a timer was activated in the algo preventing the model from flipping sides for 87 minutes. About 25 minutes into trading it was a moot point since the stock market went downhill again. The algo prints seven numbers thus far today, a very active day, and the drama will likely continue.

Utilities are key to broad market direction and are sending stocks to and fro today. Watch the two key levels previously mentioned, UTIL 577.25 and 577.85. If UTIL falls under 577.25, stocks are in trouble and will paint an ugly tape into the closing bell. If UTIL recovers and moves above 577.85 and higher, stocks will rally into the closing bell and a recovery rally may be at hand. If UTIL moves above 577.85 and stays above for 7 to 10 minutes, and the SPX moves into the 1936-1947 zone, Keybot will likely flip long. UTIL is at 577.45, 'weeeelllll doggie', as Jed Clampett would say on the Beverly Hillbillies television show, that bugger is right between the two key levels. As utes go, so goes the market. The bears continue to drive the bus but the bulls are fighting hard trying to create strength in stocks with higher utilities.

1/15/16; 10:00 AM EST =
1/12/16; 1:18 PM EST = -40; signal line is -34
1/12/16; 12:30 PM EST = -56; signal line is -33
1/12/16; 12:24 PM EST = -40; signal line is -33
1/12/16; 11:16 AM EST = -24; signal line is -32 but algorithm remains short
1/12/16; 11:01 AM EST = -40; signal line is -31
1/12/16; 9:55 AM EST = -56; signal line is -31
1/12/16; 9:54 AM EST = -40; signal line is -30
1/11/16; 9:36 AM EST = -24; signal line is -29 but algorithm remains short

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