Sunday, January 31, 2016


Keybot the Quant is long moving into the new week of trading. The bulls are running with the ball for the first time this year; will they run downfield or trip and fumble? Market bulls need either JJC above 23.90 and/or VIX below 19.20 which will prove the upside stock market rally is real. Until at least one of these two parameters occur, the rally in equities is suspect.

The market bears need to push UTIL under 594.41 to get their mojo back but this is a formidable task with UTIL exploding above 611 last week. If UTIL drops under 594.41, Keybot will likely flip back to the short side. If UTIL drops under 580.50 it is likely that the stock market would go into free fall. For now, bulls are not worried since utes are strong.

For the SPX for Monday starting at 1940, the bulls need any smidge of green in the S&P futures overnight and bingo, several handles of upside is on tap for the SPX after the opening bell. The bears need to retrace Friday's big move higher, as they say in Brooklyn, 'good luck wit dat', so instead the bears will be pushing utilities and copper lower and volatility higher. Watch copper overnight since stocks will likely move in the same direction as the other yellow metal this week.

Keybot prints one pre-scheduled number this week on Friday morning. The bulls are driving the bus with the algo number 13 points above the signal line but the caution flag remains out until utes, copper and volatility decide the market direction forward.

2/7/16; 7:00 PM EST =
2/5/16; 9:00 AM EST =
1/31/16; 7:00 PM EST EOM = -23; signal line is -36
1/29/16; 10:00 AM EST = -23; signal line is -37

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