Monday, August 15, 2016


Keybot the Quant remains long. The algo prints one number to start the new week of trading. The bulls win the day pumping commodities higher which sends the stock market higher. GTX crosses above the key level of 2263 (now at 2266) joining the bull camp and creating market positivity. Copper remains bearish with JJC under 24.80. The bulls need to push JJC above 24.80 to confirm more upside in equities. Bears need to push GTX under 2263 to stop the upside and prove that a near-term top is in play. If GTX loses 2263, and the SPX drops under 2186, Keybot will likely flip short hence the imminent turn notation remains in the title line and the daily drama in these erratic and unstable markets continues.

For the SPX starting at 2190 on Tuesday, the bulls need to touch the 2194 handle and bingo, 2200 will print in quick order. The bears need to push below 2186 to accelerate the downside. A move through 2187-2193 is sideways action. This is a tight range so one side or the other will likely win on Tuesday. If the overnight S&P futures are up +3 the bulls will be joyous. If the S&P futures are down -3, the bears will rule on Tuesday.

Note the algo number is only one point above the signal line. The odd market behavior continues. The model has threatened to go short every day for over one week. Will Tuesday be the day? GTX 2263 and SPX 2186 tells the market story tomorrow. Keybot prints a pre-scheduled number before Tuesday's opening bell.

8/21/16; 7:00 PM EST =
8/16/16; 9:00 AM EST =
8/15/16; 2:21 PM EST = +78; signal line is +77
8/14/16; 7:00 PM EST = +64; signal line is +76 but algorithm remains long

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