Monday, April 11, 2016


Keybot the Quant flipped to the long side today. Stocks sold off late in the day. The NYA lost the important 10122 level that remains in play. XLF drops to end exactly at the 22.14 level called out by the algorithm ahead of time. Isn't it amazing that the algorithm can identify these important parameters and their specific key levels before they occur? As financials go, so goes the markets. GTX 2146 remains key to market direction.

Bulls win if they send NYA above 10122. Bears win if they either send XLF under 22.14 and/or GTX under 2146. Both turning bearish would guarantee a collapse in stocks. If one of the two turn bearish, Keybot will likely flip back to the short side. Thus, the imminent turn notation is in the title line since the algo may whipsaw back to the short side on Tuesday.

For the SPX starting at 2042, the bulls need to push above 2063, a formidable task, so instead, bulls will focus on pushing the NYA higher. The bears need any smidge of red in the S&P futures overnight and the SPX will accelerate lower at the opening bell. A move through 2043-2062 is sideways action for Tuesday. The pivot by XLF off the 22.14 level will tell you the stock market direction. Watch the banks.

4/15/16; 10:00 AM EST =
4/11/16; 3:57 PM EST = +64; signal line is +59
4/11/16; 9:42 AM EST = +78; signal line is +58; go long 2056; (Benchmark SPX for 2016 = +0.6%)(Keybot algo this trade = -0.5%; Keybot algo for 2016 = +7.1%)(Actual results this trade = -0.0%; Actual results for 2016 = +12.8%)

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