Sunday, February 28, 2016


Keybot the Quant remains long moving into the new week of trading with the algo number only one tick above the signal line. The stock market is a toss-up currently. The bears need RTH under 72.75 and/or JJC under 23.81 to prove that the stock market will sell off and head lower; either one would do both would send stocks strongly lower. If one of the parameters turns bearish and the SPX drops under 1946, Keybot may flip to the short side. If both remain in the bull camp, stocks will float along sideways to sideways higher. The bulls need the VIX to drop under 19.46 since it will signal a sustainable upside rally on tap for stocks.

For the SPX starting at 1948, the bulls need to touch the 1963 handle, and bingo, the upside will accelerate towards 1970. The bears need to push under 1946, only a couple points lower, to accelerate the downside. Watch the S&P futures to see if the bears can muster up a couple negative points. A move through 1947-1962 is sideways action to begin the week.

Monday is the EOM, a leap year day, 2/29/16. Keybot prints two pre-scheduled numbers this week one on Monday evening and the other Friday morning. The bulls are driving the bus but the stock market is a coin-flip. Watch retail stocks, copper and volatility since these three parameters are most greatly impacting market direction according to the algo. Focus on VIX 19.46 which will tell you if stocks are headed up or down (volatility moves inversely to stocks).

3/6/16; 7:00 PM EST =
3/4/16; 9:00 AM EST =
2/29/16; 7:00 PM EST EOM =
2/28/16; 7:00 PM EST = +21; signal line is +20
2/26/16; 1:23 PM EST = +21; signal line is +21 but algorithm remains long

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.