Friday, January 8, 2016


Keybot the Quant remains short through the tumultuous markets. Keybot prints five numbers yesterday. The algo wants to flip long but then is kicked backwards and remains in the bear camp. The imminent turn notation remains. If UTIL moves above 579, and SPX above 1985, Keybot will likely flip long. If a robust rally occurs and utilities, financials, retail stocks, copper and other sectors are launching higher, and volatility plummeting, Keybot may flip long before the SPX 1985 level.

Keybot prints a pre-scheduled number in about one hour's time. For the SPX starting at 1943, the bears need to push under 1939 and boom, price will fall like a rock towards 1930. The bulls need to touch 1985 to regain their mojo, a formidable task, so instead the bulls will will strive to push utilities and retail stocks higher and volatility lower which will stop the market selling and stabilize stocks.

Under the current market conditions, if UTIL falls under 572.36, the stock market will likely drop into free fall in quick order. The SPX would be expected to dump 20 to 40 handles in a heartbeat. The S&P futures are up +12 pointing to a happy start for markets instead. Going into the closing bell, watch UTIL 577.25; this number is valid for all of next week and replaces the 572.36, thus, it is an easier level for bears to attain. Interestingly, UTIL begins Friday at 577.51 the various robots are already jockeying for position. At 4 PM EST today, if UTIL finishes under 577.25, the stock market would be in danger of a major negative event occurring next week. If UTIL remains above 577.25 at the closing bell, bulls will be in fine shape for a recovery rally for the stock market next week. If UTIL finishes above 579, this will paint an even rosier picture for stocks next week.

1/10/16; 7:00 PM EST =
1/8/16; 9:00 AM EST =
1/7/16; 11:28 AM EST = -40; signal line is -32
1/7/16; 11:17 AM EST = -24; signal line is -32 but algorithm remains short
1/7/16; 11:04 AM EST = -40; signal line is -31
1/7/16; 10:54 AM EST = -24; signal line is -29 but algorithm remains short
1/7/16; 9:36 AM EST = -40; signal line is -28
1/6/16; 3:18 PM EST = -24; signal line is -25 but algorithm remains short

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