Sunday, March 13, 2016


Keybot the Quant is on the long side after last week's late-week whipsaw and markets will likely remain choppy and erratic. Monday is a fight between commodities and the SPX. The bulls win if the SPX moves above 2029 since lots more upside would be guaranteed going forward (as explained in the prior post). The bears need GTX under 2150 to stop the rally and start to roll stocks over to the downside. If SPX remains under 2029 and GTX above 2150, the stock market will stagger sideways with a slight upward bias. One of these two parameters will flinch and tell you the market direction forward. If the bears win with GTX under 2150, then watch volatility; the bears will growl strongly with stocks dropping like a stone if the VIX moves above 19.79.

For the SPX starting at 2022, the bulls need any tiny smidge of green in the overnight S&P futures and bingo, the SPX will run several handles higher after the opening bell and likely move higher to test the critical 2029. The bears need to push under 1995 to regain their downside mojo. A move through 1996-2021 is sideways action to begin the week. Keybot prints two pre-scheduled numbers this week one on Wednesday morning and the other Friday morning. The bulls are in charge with the algo number 18 points above the signal line.

3/20/16; 7:00 PM EST =
3/18/16; 10:00 AM EST =
3/16/16; 9:00 AM EST =
3/13/16; 7:00 PM EST = +65; signal line is +47
3/11/16; 9:36 AM EST = +65; signal line is +46; go long 2008; (Benchmark SPX for 2016 = -1.8%)(Keybot algo this trade = -1.8%; Keybot algo for 2016 = +8.1%)(Actual results this trade = -3.4%; Actual results for 2016 = +14.1%)

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