Thursday, February 9, 2017


Keybot the Quant remains short moving into the Thursday session but the quant is champing at the bit to go long. The algo prints two numbers on Wednesday. Sound the seven trumpets. The algo number tags +100 the maximum possible reading. Interestingly, the model prints the +100 but the SPX traded negative for most of the Wednesday session. This is extremely odd price action. A +100 event is a very rare occurrence but over the last few months the model keep tagging this epic level.

If the SPX moves above 2296, Keybot will likely flip long. If a gap-up move occurs at the opening bell, a timer may be triggered forcing Keybot to hold off on the move to the long side for 90 minutes. The best thing for market bulls is to see the S&P 500 move slowly and steadily higher which will likely flip the model to the long side. S&P futures are trading flat to +1 about five hours before the opening bell.

The parameters are in place to send the stock market higher. The bears can stall the move if either UTIL drops under 666 (now at 670), or, if RTH drops under 76.53 (now at 77.00). If these two parameters remain bullish, stocks are going to keep floating higher. Bears need weaker utes and retail stocks.

For the SPX starting at 2295, the bulls need to push above 2296, only one point higher, and the upside will quickly accelerate several handles to 2300 and higher. The bears need to push below 2285 to get their mojo back. A move through 2286-2295 is sideways action for Thursday. The bulls have it on a silver platter if they want it.

2/12/17; 7:00 PM EST =
2/10/17; 10:00 AM EST =
2/8/17; 11:15 AM EST = +100 signal line is +71 but algorithm remains short
2/8/17; 9:47 AM EST = +84; signal line is +70 but algorithm remains short
2/7/17; 2:09 PM EST = +68; signal line is +69

No comments:

Post a Comment

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