Friday, August 19, 2016


Keybot the Quant remains long as the algo prints five numbers in the Thursday session the most active day for the model in two weeks or more. Isn't it amazing that the algorithm can call out the most important parameter that impacts the direction of the stock market including the key level for that parameter? JJC ends the session at 24.80 exactly at the bull-bear line in the sand called out ahead of time at 24.79-24.80. This is astounding. Enjoy the information while it is presented since if the Keystone family of web sites are not supported properly, the ongoing information can end at anytime.

The copper pivot will send stocks in the same direction. Copper futures are trading lower overnight so JJC should slip into the bear camp after the opening bell for the regular session and create sogginess in stocks. S&P futures are down -5 three hours before the opening bell. The market bears likely need more than weak copper, however, to flip the algo short. Bears need GTX to drop under 2268. Weak utilities and higher volatility will also help bears.

The collapse in utilities in recent days is very important. A roll over in utes is a negative signal for the stock market. UTIL 665.34 is a key bull-bear level identified by Keybot and it comes into play at 4 PM EST today and all of next week. UTIL is at 691.52 but has printed as low as 667.43 this week. If UTIL loses 665.34 over the coming days, the stock market will be in serious trouble.

For the SPX starting at 2187 for the Friday session, the bulls need any smidge of green in the S&P futures and the SPX will run several handles higher into the 2190's. S&P futures point to a lower open. The bears need to push under 2180 to accelerate the downside.

The bulls continue to drive the bus. Lower copper will help the bears move towards flipping the model short but the algo will likely want to see more such as GTX under 2268, UTIL under 665 and/or VIX above 14.58 (now at 12.04 in early trading) to commit to the short side.

8/21/16; 7:00 PM EST =
8/18/16; 11:19 AM EST = +94; signal line is +76
8/18/16; 11:09 AM EST = +78; signal line is +76
8/18/16; 10:55 AM EST = +94; signal line is +77
8/18/16; 10:43 AM EST = +78; signal line is +77
8/18/16; 9:36 AM EST = +94; signal line is +77
8/17/16; 9:36 AM EST = +78; signal line is +77

No comments:

Post a Comment

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