Thursday, March 31, 2016


Keybot the Quant is long moving into the Thursday session but as seen by both the algo number and signal line at +80, the model is champing at the bit to go short. Keybot did not latch all the necessary parameters yesterday to flip short so it remains long. The imminent turn notation is in the title line. Thursday is a battle between commodities and copper and interestingly, they will likely move in the same direction. The bulls need GTX above 2154 to continue the stock market rally. GTX popped above yesterday only to reverse and collapse.

The bears need to push JJC (copper) under 25.14 to create market weakness. If JJC drops under 25.14 and SPX under 2058, Keybot will likely flip short. Copper is down -0.9% in early trading which would correlate to JJC at 25.08 in bear territory after the opening bell.

Note that Keybot prints an off-the-charts, overbot, lofty, very rare and uber high +94 yesterday. This likely warns of trouble ahead for stocks since there is little room for the algo to move higher (+100 is maximum for the Keybot the Quant oscillator).

For the SPX starting at 2064, the bulls need to push above 2072 to accelerate the upside. The bears need to push under 2058 to accelerate the downside. S&P futures are -4 three hours before the opening bell. A move through 2059-2063 is sideways action but this is such a tight range that markets will likely make a decision up or down instead.

Keybot remains in the bull camp but it appears the algo may flip short today. Watch JJC 25.14 and SPX 2058 for the answer. Keybot only sees 1's and 0's so you have to simply wait to see how the algo progresses.

3/31/16; 7:00 PM EST EOM =
3/30/16; 10:07 AM EST = +80; signal line is +80 but algorithm remains long
3/30/16; 9:52 AM EST = +94; signal line is +79
3/29/16; 2:15 PM EST = +80; signal line is +77; go long 2050; (Benchmark SPX for 2016 = +0.3%)(Keybot algo this trade = -1.2%; Keybot algo for 2016 = +7.8%)(Actual results this trade = -1.4%; Actual results for 2016 = +13.0%)

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